London midday: Stocks extend gains as energy sector rallies
By Michele Maatouk
Date: Monday 06 Dec 2021
(Sharecast News) - London stocks had extended gains by midday on Monday as worries about the Omicron variant eased, with strength in the energy sector lending a hand.
The FTSE 100 was up 0.9% at 7,187.84
Hargreaves Lansdown analyst Susannah Streeter said: "The travel industry may have been buffeted by yet another chill wind of more testing requirements, but airlines and hotel groups are riding higher amid hopes the new Omicron variant may not provoke more serious illness.
"Overall optimism has pushed the FTSE 100 into the green, with expectations that even if the new strain is more infectious, if it's weaker the world will evade more widespread economic damage this winter. Instead of a feared for winter luge ride on the stock markets, a Santa rally appears to be making an appearance, albeit weighed down with quite a bit of baggage and still set for quite a bumpy ride ahead."
Investors were also digesting the latest reading on the UK construction sector, which showed that output picked up in November as supply bottlenecks started to ease.
The IHS Markit/CIPS UK Construction PMI total activity index was 55.5 in November, up on October's 54.6. The reading - which IHS Markit said signalled a "robust and accelerated" expansion - beat consensus. Most analysts had expected the index to nudge down to 54.2.
A steeper rise in the commercial construction index - to 56.5 - helped offset a slight fall in the house building index, which eased to 54.7 from 55.4. Engineering was the weakest of the three sub-sectors, at 53.9, though the latest rise in activity was the largest since August.
The portion of respondents citing longer delivery times was 47%, significantly down on June's peak of 77%, and both new business volumes and business activity rose.
However, cost pressures remained significant, with rapid input price inflation and haulage driver shortages. Around 72% of respondents reported an increase in purchase prices.
In equity markets, oil giants BP and Shell gushed higher as oil prices rose.
BT was trading up after a report that US media group Discovery was in talks over a deal to partner with BT Sport, in a move that would hijack the British television network's £600m sale to sports streaming service DAZN.
Shipping broker Clarkson rallied after lifting its annual profits guidance as the global economy recovers from the impact of Covid-19.
FirstGroup surged ahead of results later this week, while ContourGlobal gained after it upgraded full-year earnings guidance following a stronger-than-expected performance from its natural gas fired power plant in Spain.
Victrex advanced after it posted a rise in full-year profit and revenue and hiked its dividend.
Housebuilder Crest Nicholson was a high riser after an upgrade to 'overweight' at Barclays.
On the downside, Synthomer tumbled after a downgrade to 'underweight' at Morgan Stanley, while abrdn was knocked lower by a downgrade to 'underweight' by the same outfit.
Market Movers
FTSE 100 (UKX) 7,187.84 0.92%
FTSE 250 (MCX) 22,724.38 0.35%
techMARK (TASX) 4,382.49 0.58%
FTSE 100 - Risers
Hikma Pharmaceuticals (HIK) 2,258.00p 2.78%
Anglo American (AAL) 2,791.50p 2.74%
BP (BP.) 349.45p 2.52%
Royal Dutch Shell 'B' (RDSB) 1,685.20p 2.34%
Intertek Group (ITRK) 5,582.00p 2.23%
Royal Dutch Shell 'A' (RDSA) 1,687.00p 2.16%
Burberry Group (BRBY) 1,800.00p 1.95%
BT Group (BT.A) 171.75p 1.87%
Vodafone Group (VOD) 112.42p 1.85%
Glencore (GLEN) 358.40p 1.85%
FTSE 100 - Fallers
Ocado Group (OCDO) 1,590.50p -2.21%
3i Group (III) 1,384.50p -1.70%
Ferguson (FERG) 11,435.00p -1.55%
Scottish Mortgage Inv Trust (SMT) 1,379.50p -1.22%
Persimmon (PSN) 2,774.00p -1.14%
Johnson Matthey (JMAT) 2,022.00p -1.03%
Taylor Wimpey (TW.) 161.90p -0.67%
Royal Mail (RMG) 482.70p -0.62%
Abrdn (ABDN) 232.60p -0.56%
Aveva Group (AVV) 3,190.00p -0.53%
FTSE 250 - Risers
FirstGroup (FGP) 102.60p 10.14%
Clarkson (CKN) 3,905.00p 5.97%
Mitchells & Butlers (MAB) 235.80p 5.46%
Hochschild Mining (HOC) 132.50p 4.33%
Trustpilot Group (TRST) 305.60p 3.95%
Victrex plc (VCT) 2,430.00p 3.23%
Harbour Energy (HBR) 409.80p 2.76%
Restaurant Group (RTN) 86.10p 2.74%
Chrysalis Investments Limited NPV (CHRY) 238.00p 2.59%
Caledonia Investments (CLDN) 3,640.00p 2.54%
FTSE 250 - Fallers
Synthomer (SYNT) 420.00p -11.58%
Micro Focus International (MCRO) 332.00p -5.74%
Aston Martin Lagonda Global Holdings (AML) 1,324.50p -3.18%
Network International Holdings (NETW) 263.70p -2.66%
Volution Group (FAN) 499.00p -2.54%
Baillie Gifford US Growth Trust (USA) 318.50p -2.45%
Vivo Energy (VVO) 132.40p -2.36%
Dr. Martens (DOCS) 390.00p -2.35%
Auction Technology Group (ATG) 1,454.00p -1.76%
Discoverie Group (DSCV) 967.00p -1.63%
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