London close: Stocks mixed as investors mull China reopening

London stocks were mixed by the close on Monday, as investors continued to mull last week’s payrolls report and a further easing of Covid curbs in China.

The FTSE 100 ended the session up 0.33% at 7,724.94, while the FTSE 250 was down 0.13% at 19,479.39.

Sterling was also struggling for direction, last strengthening 0.72% on the dollar to $1.2180, while it weakened 0.21% against the euro to trade at €1.1338.

“European markets have picked up where they left off on Friday with another positive session,” said CMC Markets chief market analyst Michael Hewson.

“The FTSE 100 has pushed up to its best level since August 2018 driven by resilience in commodity prices after China relaxed Covid travel restrictions, helping to push the likes of Glencore and Antofagasta higher as copper prices push to six-month highs.

“The UK index has underperformed relative to its European peers, with the DAX performing better rising to its best levels since March last year, and up over 20% from its October lows.”

Hewson said the relaxation of travel restrictions between China, Hong Kong and the rest of the world was helping to give markets a further lift, as the New Year feel-good effect continued to drive sentiment, pushing stocks higher and the dollar lower.

“Having come off the back of some decent retail updates last week from the likes of Next and B&M European Value Retail, the next two weeks are expected to add additional insight into a sector that could well have been impacted by the recent transport strikes.

“This week we’ve got M&S, Tesco and Sainsbury, followed by Ocado next week, and optimism is high that despite the challenging economic outlook, pre-Christmas trading is likely to be decent, after Lidl reported a record day for its business on 23 December.

“After a poor 2022, Ocado shares have raced out of the traps this year, up over 20% in the last five days alone, and on top of the FTSE 100.”

On London’s equity markets, Airtel Africa slid 3.21% after saying its Nigerian subsidiary had bought 4G and 5G spectrum from the Nigerian Communications Commission for $316.7m.

AstraZeneca lost 0.39% after it announced the acquisition of US-based clinical-stage biopharmaceutical company CinCor in a $1.8bn deal.

Ground engineering contractor Keller Group tumbled 12.01% after issuing a profit warning, following the uncovering of financial fraud at its Australia business that resulted in two directors being sacked.

In what it called a "deliberate and sophisticated" reporting fraud at Austral, a civil, mining and marine contractor, profits from 2019 onwards had been overstated.

The impact of the fraud on historical operating profits was currently estimated to be £6m related to the first half of 2022, and £8m to £10m relating to prior years.

Rathbones Group was knocked 6.02% lower by a downgrade to ‘underperform’ at Jefferies.

Vodafone Group edged down 0.02% after saying it had entered into binding terms in relation to the sale of its Hungary unit to local IT company 4iG and state-owned Corvinus for €1.8bn.

On the upside, advertising giant WPP jumped 2.57% on news that activist investor Silchester has built a £500m stake in the company, making it the third-biggest shareholder.

Miners were also among the gainers amid China reopening hopes, with Glencore up 3.18%, Anglo American rising 2.07%, and Antofagasta 4.32% higher.

Reporting by Josh White for Sharecast.com. Additional reporting by Michele Maatouk.

Market Movers

FTSE 100 (UKX) 7,724.94 0.33%
FTSE 250 (MCX) 19,479.39 -0.13%
techMARK (TASX) 4,501.07 -0.06%

FTSE 100 - Risers

Antofagasta (ANTO) 1,726.50p 4.32%
Flutter Entertainment (CDI) (FLTR) 12,465.00p 3.92%
Scottish Mortgage Inv Trust (SMT) 749.20p 3.81%
Entain (ENT) 1,466.50p 3.64%
International Consolidated Airlines Group SA (CDI) (IAG) 145.54p 3.54%
Ocado Group (OCDO) 743.20p 3.51%
Glencore (GLEN) 542.60p 3.18%
Melrose Industries (MRO) 146.60p 2.88%
Croda International (CRDA) 6,762.00p 2.64%
WPP (WPP) 885.40p 2.57%

FTSE 100 - Fallers

Fresnillo (FRES) 931.80p -3.44%
Airtel Africa (AAF) 114.50p -3.21%
Beazley (BEZ) 667.00p -2.77%
BAE Systems (BA.) 835.20p -2.63%
Frasers Group (FRAS) 739.00p -2.51%
Persimmon (PSN) 1,295.00p -2.26%
Centrica (CNA) 90.46p -2.21%
United Utilities Group (UU.) 1,027.00p -2.00%
Severn Trent (SVT) 2,738.00p -1.93%
Taylor Wimpey (TW.) 106.90p -1.79%

FTSE 250 - Risers

Wizz Air Holdings (WIZZ) 2,535.00p 7.96%
Aston Martin Lagonda Global Holdings (AML) 160.40p 7.22%
Bridgepoint Group (Reg S) (BPT) 209.60p 5.91%
easyJet (EZJ) 388.90p 4.49%
Dechra Pharmaceuticals (DPH) 2,664.00p 4.06%
Intermediate Capital Group (ICP) 1,244.00p 4.00%
Bytes Technology Group (BYIT) 400.80p 3.73%
Hammerson (HMSO) 25.99p 3.18%
Mitchells & Butlers (MAB) 156.50p 3.10%
IMI (IMI) 1,425.00p 2.89%

FTSE 250 - Fallers

Keller Group (KLR) 740.00p -12.01%
Rathbones Group (RAT) 1,950.00p -6.02%
W.A.G Payment Solutions (WPS) 74.40p -4.00%
Syncona Limited NPV (SYNC) 175.20p -3.74%
Clarkson (CKN) 3,185.00p -3.63%
PureTech Health (PRTC) 260.50p -3.52%
Hipgnosis Songs Fund Limited NPV (SONG) 88.50p -3.49%
QinetiQ Group (QQ.) 344.40p -3.37%
SDCL Energy Efficiency Income Trust (SEIT) 96.90p -3.10%
Auction Technology Group (ATG) 764.00p -3.04%