London close: Stocks claw back losses to finish in the green

Market Close Report
15:25, 1st December 2020

(Sharecast News) - London stocks closed in positive territory on Tuesday, with sentiment underpinned by vaccine hopes and solid UK and China manufacturing data.
The FTSE 100 ended the session up 1.89% at 6,384.73, and the FTSE 250 was 2.63% firmer at 19,844.81.

Sterling was in a mixed state, last rising 0.59% on the dollar to $1.3401, but weakening 0.3% against the euro to €1.1136.

Today's positive move in the FTSE 100 is largely a complete reversal of yesterday's negative move," said CMC Markets analyst David Madden.

"In terms of index points, HSBC, Lloyds, BP, Royal Dutch Shell, Rio Tinto, and BHP Billiton have contributed the most to the equity benchmark, and they were some of yesterday's largest fallers."

Madden said hopes were still circulating in regards to vaccines being developed for Covid-19.

"The OECD now predicts that global GDP will contract by 4.2% this year, which is an improvement on the previous forecast of 4.5%.

"At the same time, it lowered its 2021 forecast to 4.2% from 5%."

The bullish sentiment was being seen across the board as hospitality, transport, travel and property stocks were higher as well, Madden pointed out.

"Housebuilders like Persimmon, Taylor Wimpey and Redrow have been helped by the wider bullish mood and the Nationwide report that house prices increased by 6.5% on an annual basis in November."

The mood was boosted earlier by upbeat data out of China, after the Caixin/Markit manufacturing purchasing managers' index for November rose to 54.9 from 53.6 the month before, hitting its highest level in a decade.

There was good news on home turf as well, as industry data showed the manufacturing sector continued to strengthen in November, underpinned by Brexit stockpiling and demand recovering following earlier lockdowns.

The IHS Markit/CIPS purchasing managers' index for November came in at 55.6, a 35-month high and an improvement on October's reading of 53.7.

November's reading was the sixth consecutive month of growth, and beat forecasts and the flash estimate of 55.2.

The hike was primarily attributed to the transition period drawing to a close, as raw materials were stockpiled and European Union clients brought forward orders.

In equity markets, stocks with particular exposure to the Covid-19 pandemic and related restrictions gained, with British Airways parent IAG up 5.54%, GKN owner Melrose Industries rising 6.82% and caterer Compass Group 5.85% higher.

Pub chain Mitchells & Butlers added 9% and sector peer J D Wetherspoon advanced 6.43%, and retailer WH Smith was in the black by 5.5%.

Banks gained, with Lloyds Banking Group up 7.45%, NatWest Group rising 6.57%, Barclays ahead 6..45%, HSBC Holdings adding 4.6%, and Virgin Money UK up 12.06%.

Housebuilders rallied after figures from mortgage lender Nationwide showed annual house price growth accelerated in November to its highest rate since January 2015.

Persimmon, Taylor Wimpey, Barratt Developments and Berkeley Group all rose, by 6.89%, 7.86%, 5.77% and 5.73%, respectively.

Elsewhere, Tate & Lyle was 2.61% firmer after it announced the acquisition of Sweet Green Fields, a stevia sweetener solutions business, for an undisclosed sum.

Royal Mail was lifted 5.49% 0by an upgrade to 'hold' from 'sell' at Liberum.

Market Movers

FTSE 100 (UKX) 6,384.73 1.89%
FTSE 250 (MCX) 19,844.81 2.63%
techMARK (TASX) 3,961.38 0.99%

FTSE 100 - Risers

Taylor Wimpey (TW.) 166.05p 7.86%
Melrose Industries (MRO) 165.40p 7.75%
Lloyds Banking Group (LLOY) 38.28p 7.45%
Persimmon (PSN) 2,839.00p 6.89%
NATWEST GROUP PLC ORD 100P (NWG) 164.75p 6.57%
Barclays (BARC) 143.24p 6.45%
Rolls-Royce Holdings (RR.) 112.10p 6.05%
Fresnillo (FRES) 1,115.00p 5.94%
Compass Group (CPG) 1,401.50p 5.85%
Barratt Developments (BDEV) 655.80p 5.77%

FTSE 100 - Fallers

Aveva Group (AVV) 3,181.00p -6.22%
Hikma Pharmaceuticals (HIK) 2,481.00p -4.87%
Avast (AVST) 485.20p -4.49%
Unilever (ULVR) 4,434.00p -3.00%
Sage Group (SGE) 588.00p -2.81%
Reckitt Benckiser Group (RB.) 6,448.00p -2.07%
Spirax-Sarco Engineering (SPX) 10,915.00p -1.98%
London Stock Exchange Group (LSE) 7,990.00p -1.43%
Flutter Entertainment (FLTR) 13,535.00p -1.24%
Severn Trent (SVT) 2,361.00p -1.17%

FTSE 250 - Risers

Virgin Money UK (VMUK) 141.75p 12.06%
Mitchells & Butlers (MAB) 228.50p 9.00%
IWG (IWG) 351.60p 8.92%
Cineworld Group (CINE) 62.00p 8.89%
Capita (CPI) 46.07p 8.53%
Airtel Africa (AAF) 85.40p 8.50%
Hochschild Mining (HOC) 230.40p 8.09%
Vistry Group (VTY) 892.00p 7.73%
ITV (ITV) 101.35p 7.73%
Crest Nicholson Holdings (CRST) 317.60p 7.62%

FTSE 250 - Fallers

Helios Towers (HTWS) 141.20p -3.68%
Domino's Pizza Group (DOM) 312.00p -2.44%
Premier Foods (PFD) 87.50p -1.47%
Indivior (INDV) 100.00p -1.34%
Dechra Pharmaceuticals (DPH) 3,328.00p -1.13%
Calisen (CLSN) 191.45p -1.06%
IMI (IMI) 1,108.00p -0.89%
Convatec Group (CTEC) 205.20p -0.77%
AO World (AO.) 346.50p -0.57%
Games Workshop Group (GAW) 9,840.00p -0.51%

Disclaimer & Declaration of Interest

The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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