London open: Stocks rise despite Hong Kong tensions
By Michele Maatouk
Date: Wednesday 27 May 2020
(Sharecast News) - London stocks rose in early trade on Wednesday as optimism over lockdown easing and a stimulus package for the European Union helped to offset concerns about tensions in Hong Kong.
At 0840 BST, the FTSE 100 was up 0.8% at 6,116.63.
CMC Markets analyst Michael Hewson said: "After weeks of lockdown markets appear to be betting that consumers may well go off on a summer spending splurge, as pent up demand gets unlocked, as we head into the summer months.
"Big gains in travel and leisure stocks, as well as retailers yesterday appear to be predicated on the assumption that after weeks of lockdown people will head off to sunnier climes, as the southern European economies of Spain, Italy and Greece look to roll out the red carpet in an attempt to salvage what is left of their holiday season, and industry."
Investors were also eyeing the unveiling of a potential €500bn coronavirus stimulus package from the European Commission later in the day.
The positive tone came despite growing tensions in Hong Kong and between HK and the US, after President Donald Trump said late on Tuesday that he is preparing to take action against China over its plan to impose national security laws on the territory.
In equity markets, M&G was the top riser on the FTSE 100 as it announced the acquisition of Royal London's digital wealth management platform and said it will pay dividends totalling £410m.
Asset manager St James's Place was also higher as it reported a 1% uptick in net inflows for the month of April thanks to strong retention of client investments, and said funds under management rose to £108.8bn from £107.2bn the year before, benefiting from both positive net inflows and a positive investment return.
Travel stocks were on the rise again, with cruise operator Carnival, British Airways parent IAG and TUI all firmly in the black as travel restrictions are set to be lifted in countries such as Spain and Germany.
On the downside, education publisher Pearson was knocked lower by a downgrade to 'sell' from 'hold' at Berenberg, which cut its estimates on the stock again to reflect the risk of severe disruption to college enrolments in 2020 and less favourable FX rates.
Market Movers
FTSE 100 (UKX) 6,116.63 0.81%
FTSE 250 (MCX) 17,046.97 0.67%
techMARK (TASX) 3,729.40 0.45%
FTSE 100 - Risers
M&G (MNG) 133.85p 5.15%
St James's Place (STJ) 920.20p 4.93%
Carnival (CCL) 1,155.00p 3.96%
International Consolidated Airlines Group SA (CDI) (IAG) 242.60p 3.76%
Royal Bank of Scotland Group (RBS) 116.70p 3.69%
Rolls-Royce Holdings (RR.) 325.00p 3.24%
British Land Company (BLND) 390.60p 2.79%
Bunzl (BNZL) 1,864.50p 2.64%
Barclays (BARC) 113.68p 2.62%
Lloyds Banking Group (LLOY) 30.85p 2.56%
FTSE 100 - Fallers
Pearson (PSON) 445.80p -3.23%
Evraz (EVR) 273.30p -1.76%
Fresnillo (FRES) 759.60p -1.58%
Centrica (CNA) 37.45p -1.53%
Polymetal International (POLY) 1,631.50p -1.39%
Persimmon (PSN) 2,301.00p -1.12%
Hargreaves Lansdown (HL.) 1,784.00p -0.89%
Just Eat Takeaway.Com N.V. (CDI) (JET) 8,640.00p -0.76%
Unilever (ULVR) 4,101.00p -0.51%
Reckitt Benckiser Group (RB.) 6,962.00p -0.49%
FTSE 250 - Risers
TUI AG Reg Shs (DI) (TUI) 524.00p 14.21%
Senior (SNR) 63.95p 8.21%
Virgin Money UK (VMUK) 95.64p 7.65%
Bank of Georgia Group (BGEO) 878.00p 4.90%
Stagecoach Group (SGC) 67.10p 4.76%
IP Group (IPO) 64.00p 4.75%
Provident Financial (PFG) 191.10p 4.54%
Hammerson (HMSO) 77.18p 3.79%
Paragon Banking Group (PAG) 352.80p 3.46%
Unite Group (UTG) 791.00p 3.33%
FTSE 250 - Fallers
Apax Global Alpha Limited (APAX) 132.20p -4.34%
Helios Towers (HTWS) 159.00p -3.64%
Petropavlovsk (POG) 24.45p -2.78%
Centamin (DI) (CEY) 160.00p -2.68%
Scottish Inv Trust (SCIN) 741.00p -2.37%
Marks & Spencer Group (MKS) 98.10p -2.19%
Contour Global (GLO) 169.40p -2.08%
Bakkavor Group (BAKK) 72.00p -2.04%
BlackRock World Mining Trust (BRWM) 347.50p -1.97%
Fidelity Special Values (FSV) 173.40p -1.81%
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