London open: Stocks rise despite expected delay to lockdown lifting
London stocks rose in early trade on Monday as investors took reports of a potential four-week delay to the lifting of England’s lockdown in their stride.
At 0840 BST, the FTSE 100 was up 0.7% at 7,184.64, hitting a fresh post-pandemic high even as Prime Minister Boris Johnson was due to announce later in the day that the lifting of lockdown - originally due to end on 21 June - will be pushed back by up to a month.
Richard Hunter, head of markets at Interactive Investor, said: "In the UK, the likelihood of an extension to the current lockdown restrictions is something which the market is expecting.
"Hospitality and travel stocks in particular have seen another downward lurch, with the additional complication of certain of the government assistance schemes also nearing an end. There is therefore likely to be something of a compromise along the way, as the government is likely to play the cautious health card ahead of completely letting the economy loose.
"In the meantime, economic recovery has been surprisingly robust. Unemployment and retail sales readings this week are both likely to show further improvement, while the inflation number may well have ticked higher following some bottlenecks in the supply chain."
In corporate news, Shell gushed higher following a report it is considering the sale of its Texas shale assets.
Serco rallied as the outsourcer lifted its full-year guidance, boosted by strong demand for test and trace services, and announced defence contract wins worth potentially £3.4bn.
On the downside, travel and leisure stocks retreated on reports of a delay to lockdown lifting, with British Airways parent IAG, engine maker Rolls-Royce, InterContinental Hotels, Premier Inn owner Whitbread, budget airlines easyJet and Wizz Air and pub group Wetherspoons all in the red.
Market Movers
FTSE 100 (UKX) 7,184.64 0.71%
FTSE 250 (MCX) 22,860.80 0.56%
techMARK (TASX) 4,481.37 0.71%
FTSE 100 - Risers
BT Group (BT.A) 195.40p 1.88%
WPP (WPP) 1,013.00p 1.77%
Royal Dutch Shell 'B' (RDSB) 1,383.60p 1.77%
Royal Dutch Shell 'A' (RDSA) 1,445.00p 1.73%
Intermediate Capital Group (ICP) 2,328.00p 1.70%
Ocado Group (OCDO) 1,951.00p 1.54%
Halma (HLMA) 2,776.00p 1.50%
Renishaw (RSW) 5,460.00p 1.49%
Pearson (PSON) 864.20p 1.43%
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,578.00p 1.34%
FTSE 100 - Fallers
Polymetal International (POLY) 1,639.50p -1.83%
International Consolidated Airlines Group SA (CDI) (IAG) 199.98p -1.58%
Fresnillo (FRES) 847.20p -1.56%
Rolls-Royce Holdings (RR.) 110.96p -0.88%
Informa (INF) 540.00p -0.59%
CRH (CDI) (CRH) 3,693.00p -0.57%
Royal Mail (RMG) 588.80p -0.24%
InterContinental Hotels Group (IHG) 5,110.00p -0.20%
Whitbread (WTB) 3,311.00p -0.12%
Associated British Foods (ABF) 2,355.00p -0.08%
FTSE 250 - Risers
Serco Group (SRP) 142.10p 4.72%
ITV (ITV) 134.05p 3.12%
Tullow Oil (TLW) 61.36p 2.82%
FDM Group (Holdings) (FDM) 1,028.00p 2.80%
Assura (AGR) 76.50p 2.14%
Oxford Instruments (OXIG) 2,205.00p 2.08%
Future (FUTR) 3,012.00p 2.03%
Investec (INVP) 307.80p 1.95%
Aston Martin Lagonda Global Holdings (AML) 2,005.00p 1.78%
Man Group (EMG) 188.05p 1.73%
FTSE 250 - Fallers
easyJet (EZJ) 940.20p -1.90%
Hochschild Mining (HOC) 176.30p -1.78%
PureTech Health (PRTC) 372.00p -1.33%
Wetherspoon (J.D.) (JDW) 1,275.00p -1.01%
FirstGroup (FGP) 81.40p -0.97%
Rank Group (RNK) 176.60p -0.90%
Hammerson (HMSO) 43.47p -0.80%
Wizz Air Holdings (WIZZ) 4,754.00p -0.67%
Restaurant Group (RTN) 128.20p -0.62%
JTC (JTC) 644.00p -0.62%