London close: Stocks higher as markets pin hopes on treatments
London stocks finished in the green on Friday, despite disappointing Chinese data, as investors pinned their hopes on a potential coronavirus treatment.
The FTSE 100 ended the session up 2.82% at 5,786.96, and the FTSE 250 was 3.13% firmer at 15,859.29.
Sterling was stronger against both of its major trading pairs, last rising 0.34% on the dollar to $1.2499 and advancing 0.03% against the euro to €1.1496.
The gains in London tracked a broader market rally, following a Stat News report that patients being treated for coronavirus in a trial at a Chicago hospital with Gilead Sciences’ investigational antiviral ‘remdesivir’ were recovering rapidly from severe symptoms.
“A lot of the chatter this morning centres on Gilead Sciences, whose shares leapt 16% in extended trading last night after reports that its antiviral drug remdesivir was delivering positive results in treating Covid-19 in a University of Chicago trial,” said Neil Wilson, chief market analyst at Markets.com.
“It’s not actually a vaccine, but anything that can help end lockdowns and get economies moving quickly is a huge positive.”
Wilson noted that Gilead was remaining “pretty circumspect” on the tests, adding there were risks in getting carried away at such times of crisis when people will cling to anything offering hope.
“On the other hand, there are a lot of companies working on cures and vaccines right now - human ingenuity will win in the end.”
Investors were also digesting data out of China, which showed the economy shrank for the first time since records began in 1992.
Gross domestic product contracted by 6.8% in the first three months of the year compared to a 6% expansion in the final quarter of last year and coming in worse than consensus expectations for a 6.5% decline.
Other figures showed that China’s industrial output fell 1.1% in March compared to a year earlier, which was better than the 7.3% drop expected.
Retail sales were down 15.8% in March versus expectations for a 10% decline, while fixed asset investment slid 16.1% year-on-year compared to expectations of a 15% drop.
In equity markets, gambling group Flutter Entertainment surged 15.67% as it said first-quarter revenues had been more resilient than initially expected despite the cancellation of many sports due to the coronavirus pandemic, largely bolstered by the continuation of horse racing in Australia and the US.
InterContinental Hotels added 10.89% and cruise operator Carnival rose 5.95%,, while Premier Inn owner Whitbread piled on 6.44% as it said the Bank of England had agreed to buy its commercial paper if necessary to support the hotel group's liquidity during the Covid-19 crisis.
Wealth manager Brewin Dolphin was 18.12% firmer, even as it posted a drop in second-quarter total funds under management and noted that markets have been hit recently due to the Covid-19 outbreak.
Magazine publisher Future was 6.36% higher after its £140m acquisition of TI Media was cleared by the Competition and Markets Authority.
On the downside, private hospital group Mediclinic sank 5.24% as it pulled its dividend and said it sees a hit from the cancellation of non-elective surgery.
Market Movers
FTSE 100 (UKX) 5,786.96 2.82%
FTSE 250 (MCX) 15,859.29 3.13%
techMARK (TASX) 3,507.90 3.14%
FTSE 100 - Risers
Flutter Entertainment (FLTR) 9,018.00p 15.67%
Melrose Industries (MRO) 91.12p 11.18%
InterContinental Hotels Group (IHG) 3,563.00p 10.89%
Meggitt (MGGT) 275.70p 10.68%
easyJet (EZJ) 638.80p 8.57%
Rolls-Royce Holdings (RR.) 334.50p 8.22%
Prudential (PRU) 1,042.00p 8.18%
Glencore (GLEN) 141.28p 7.32%
ITV (ITV) 71.22p 7.23%
Halma (HLMA) 2,119.00p 6.97%
FTSE 100 - Fallers
Just Eat Takeaway.Com N.V. (CDI) (JET) 7,758.00p -3.11%
Fresnillo (FRES) 707.80p -2.91%
Pennon Group (PNN) 1,087.00p -2.47%
Ocado Group (OCDO) 1,569.00p -1.97%
Aveva Group (AVV) 3,351.00p -1.73%
Polymetal International (POLY) 1,511.00p -1.71%
Severn Trent (SVT) 2,312.00p -1.45%
United Utilities Group (UU.) 889.80p -1.16%
Imperial Brands (IMB) 1,564.50p -0.79%
Centrica (CNA) 31.81p -0.78%
FTSE 250 - Risers
Cineworld Group (CINE) 62.62p 21.40%
Brewin Dolphin Holdings (BRW) 247.00p 18.12%
Aston Martin Lagonda Global Holdings (AML) 58.10p 15.05%
Mitchells & Butlers (MAB) 187.40p 14.13%
Wood Group (John) (WG.) 190.70p 13.38%
Bodycote (BOY) 594.50p 11.23%
Wizz Air Holdings (WIZZ) 2,744.00p 11.09%
Capita (CPI) 36.05p 10.18%
Rathbone Brothers (RAT) 1,530.00p 9.94%
G4S (GFS) 94.62p 9.42%
FTSE 250 - Fallers
TI Fluid Systems (TIFS) 146.20p -6.52%
Hochschild Mining (HOC) 121.30p -6.04%
Mediclinic International (MDC) 253.20p -5.24%
Hyve Group (HYVE) 23.75p -5.00%
Elementis (ELM) 63.10p -4.24%
Centamin (DI) (CEY) 131.95p -3.19%
4Imprint Group (FOUR) 1,838.00p -3.16%
Just Eat Takeaway.Com N.V. (CDI) (JET) 7,758.00p -3.11%
Plus500 Ltd (DI) (PLUS) 1,135.00p -2.37%
Bakkavor Group (BAKK) 70.50p -2.08%