Register for Digital Look

London midday: Stocks maintain gains ahead of payrolls

By Michele Maatouk

Date: Friday 05 Jun 2020

(Sharecast News) - London equity markets were still firmly in the black by midday on Friday, with travel-related shares pacing the gains as investors eyed the latest US non-farm payrolls report.
The FTSE 100 was up 0.9% at 6,395.81.

IG said: "It has been a big week for the travel sector, with the prospect of a surge in travel for July boosting sentiment amid a flight to value over recent days. With the likes of IAG, Carnival, and easyJet leading the FTSE 100 higher, we are continuing to see traders favour those heavily-hit stocks in a bid to find returns given the outperformance within growth stocks."

Investors were awaiting the release of the latest US payrolls report, along with the unemployment rate and average earnings at 1330 BST.

Spreadex analyst Connor Campbell said: "Analysts are expecting the headline figure to show that a further 7.75 million jobs were lost last month, an estimate that is already lower than the initial 9 million-plus assessment thanks to Wednesday's far better than forecast ADP reading.

"It bears repeating that it is insane that such a high figure could draw market-relief, but then, we are in unprecedented times, and investors have quickly adapted to this new normal."

On home shores, the latest survey from GfK showed consumer confidence fell in May to its worst level since January 2009 as the Covid-19 pandemic continued to weigh.

A 'flash' report by GfK using data gathered between 20 and 26 May showed the long-running consumer confidence index fell by two points to -36, with four out of five of the measures that make up the index down. This was just three points below the historic low of -39 in July 2008.

Joe Staton, client strategy director at GfK, said: "Against a backdrop of falling house prices, soaring jobless claims, and with no sign of a rapid V-shaped bounce-back on the cards, consumers remain pessimistic about the state of their finances and the wider economic picture for the year to come.

"The only bright spark in the numbers is for the major purchase index with a six-point fillip, pointing to latent demand among shoppers across the UK despite most outlets remaining shuttered."

Meanwhile, a survey from Halifax showed house prices edged lower in May as the full impact of Covid-19 lockdown measures was felt

House prices were 0.2% lower on the month, but this was an improvement on the 0.6% decline seen in April and the 0.3% fall in March. On the year, prices were up 2.6% in May following a 2.7% increase the month before.

Halifax managing director Russell Galley said: "This is the third successive monthly fall, though more modest than in April, and reflects a continued loss of momentum following what was a strong start to the year. Though it should still be noted that with a limited number of transactions available, calculating average house prices remains challenging and increased volatility is to be expected."

In equity markets, airlines were the standout gainers, with budget offering easyJet and British Airways and Iberia parent IAG both sharply higher. Cruise operator Carnival rallied, along with Premier Inn owner Whitbread.

Retailer WH Smith, which operates in airports and train stations, also racked up strong gains.

Luxury car maker Aston Martin was a high riser, having suffered heavy losses in the previous session when it announced the axing of 500 workers as it cut back production after the pandemic led to a sales slump.

On the downside, waste management company Biffa was in the red after its full-year results.

Market Movers

FTSE 100 (UKX) 6,395.81 0.86%
FTSE 250 (MCX) 18,031.18 1.15%
techMARK (TASX) 3,832.80 0.49%

FTSE 100 - Risers

Melrose Industries (MRO) 140.90p 8.89%
Carnival (CCL) 1,298.50p 8.71%
International Consolidated Airlines Group SA (CDI) (IAG) 312.50p 8.43%
Meggitt (MGGT) 366.10p 7.80%
Rolls-Royce Holdings (RR.) 348.60p 7.59%
Whitbread (WTB) 2,700.00p 6.93%
Intermediate Capital Group (ICP) 1,355.00p 5.78%
Standard Chartered (STAN) 455.30p 5.64%
JD Sports Fashion (JD.) 702.20p 5.59%
M&G (MNG) 159.00p 5.47%

FTSE 100 - Fallers

Pennon Group (PNN) 1,100.00p -3.00%
Polymetal International (POLY) 1,456.00p -2.74%
London Stock Exchange Group (LSE) 8,050.00p -2.66%
Hikma Pharmaceuticals (HIK) 2,331.00p -2.55%
Ocado Group (OCDO) 2,083.00p -2.48%
Auto Trader Group (AUTO) 552.60p -2.37%
Relx plc (REL) 1,890.00p -2.30%
Admiral Group (ADM) 2,278.00p -2.02%
Rentokil Initial (RTO) 480.80p -1.88%
Reckitt Benckiser Group (RB.) 6,906.00p -1.88%

FTSE 250 - Risers

Aston Martin Lagonda Global Holdings (AML) 75.00p 12.53%
WH Smith (SMWH) 1,300.00p 10.83%
Provident Financial (PFG) 219.60p 8.71%
Hyve Group (HYVE) 143.00p 7.52%
Countryside Properties (CSP) 333.00p 7.07%
SSP Group (SSPG) 331.00p 6.98%
Bakkavor Group (BAKK) 84.50p 6.96%
Morgan Advanced Materials (MGAM) 251.00p 6.81%
Mitchells & Butlers (MAB) 210.50p 6.53%
Cineworld Group (CINE) 90.40p 5.78%

FTSE 250 - Fallers

Kaz Minerals (KAZ) 442.40p -10.99%
Biffa (BIFF) 241.50p -8.00%
Senior (SNR) 87.70p -3.63%
Plus500 Ltd (DI) (PLUS) 1,252.00p -2.64%
Domino's Pizza Group (DOM) 348.40p -2.41%
Spirent Communications (SPT) 240.50p -2.24%
IG Group Holdings (IGG) 771.00p -2.22%
Ascential (ASCL) 290.80p -2.09%
Petropavlovsk (POG) 24.20p -2.02%
Assura (AGR) 79.40p -1.98%


Email this article to a friend

or share it with one of these popular networks:

Top of Page