London close: FTSE 100 manages to close higher amid stimulus hopes
London’s benchmark lost some of its earlier gains by the close on Friday, but remained above the waterline, with stimulus hopes lending support as investors continued to mull the impact of the Covid-19 coronavirus pandemic.
The FTSE 100 ended the session up 2.46% at 5,366.11, while the FTSE 250 was down 0.99% at 15,562.00.
Sterling was weaker against both of its major trading pairs, last falling 1.69% against the dollar to $1.2359, and slipping 0.77% on the euro to €1.1152.
“It feels appropriate that this week should end with a Friday the 13th,” quipped Spreadex analyst Connor Campbell earlier.
“Yet following the worst session since 1987 - and the FTSE’s second worst performance ever - investors were willing to give a rebound another go.”
Campbell said that sweeping in a multi-year lows felt like “a natural reaction” to Thursday’s events.
“Especially after the Federal Reserve attempted - if weren’t quite successful at - damage control by announcing a $1.5trn market injection last night."
Stimulus hopes were helping to underpin sentiment after the Bank of Japan said it would implement measures to provide “ample liquidity”, using market operations with long maturities.
The announcement came as the central bank said it had conducted an unscheduled bond buying – its first since August 2018 - offering to buy JPY 200bn worth of bonds with five-to-10 years to maturity.
It said it would continue to conduct additional outright purchases of Japanese government bonds as needed, taking account of market conditions.
Meanwhile, the People’s Bank of China said it will cut the reserve requirement ratio by 50 to 100 basis points for banks that met inclusive financing targets, as it looked to counter the effects of the pandemic.
The reserve requirement ratio is the amount of funds a bank must have on hand each night.
It was the second time this year that the Chinese central bank had made such a move, which was set to release CNY 550bn in liquidity.
In equity markets, miners were among the top gainers, with BHP up 12.15%, Anglo American adding 8.2%, and Rio Tinto 9.64% higher.
BT was up 4.64%, even after it said chief executive Philip Jansen had tested positive for Covid-19 and self-isolated.
Premier Oil rocketed 26.77% after saying it had "significant" liquidity with unrestricted cash of $135m and undrawn facilities of $330m at the end of February, as a major creditor claimed the troubled producer was running out money and needed to review its debt obligations.
The British explorer was seeking court approval to buy oil and natural gas fields in the North Sea and the extension of more than $2bn in debt maturities to 2023.
Oil prices have crashed due to a slump in demand caused by the coronavirus.
Travelex owner Finablr surged 158.44% by the close, having tumbled on Thursday after saying it was under pressure from the NMC Health scandal and the coronavirus outbreak and was "urgently" reviewing its liquidity and cash flow.
It said it would commission an independent investigation into its finances.
On the downside, cruise operator Carnival continued to fall, losing 9.93%, having said on Thursday that Princess Cruises was suspending all operations for two months due to the coronavirus pandemic.
Market Movers
FTSE 100 (UKX) 5,366.11 2.46%
FTSE 250 (MCX) 15,562.00 -0.99%
techMARK (TASX) 3,156.54 -0.18%
FTSE 100 - Risers
Evraz (EVR) 228.80p 12.49%
BHP Group (BHP) 1,054.00p 12.15%
Rio Tinto (RIO) 3,274.00p 10.31%
Ocado Group (OCDO) 1,183.00p 9.84%
Hargreaves Lansdown (HL.) 1,320.50p 9.04%
Anglo American (AAL) 1,323.40p 8.20%
Coca-Cola HBC AG (CDI) (CCH) 1,851.50p 7.90%
Ashtead Group (AHT) 1,831.50p 7.64%
United Utilities Group (UU.) 873.20p 7.30%
Just Eat Takeaway.Com N.V. (CDI) (JET) 5,900.00p 7.18%
FTSE 100 - Fallers
Carnival (CCL) 1,161.00p -9.93%
TUI AG Reg Shs (DI) (TUI) 360.00p -6.54%
Taylor Wimpey (TW.) 148.55p -5.17%
Barratt Developments (BDEV) 526.60p -5.05%
JD Sports Fashion (JD.) 512.60p -4.83%
Persimmon (PSN) 2,042.00p -4.71%
Compass Group (CPG) 1,189.50p -4.15%
Flutter Entertainment (FLTR) 6,476.00p -3.34%
DCC (DCC) 4,239.00p -2.33%
Kingfisher (KGF) 136.50p -2.33%
FTSE 250 - Risers
Finablr (FIN) 11.97p 158.44%
Premier Oil (PMO) 16.01p 26.77%
Just Group (JUST) 60.55p 14.68%
Cairn Energy (CNE) 69.05p 12.64%
OneSavings Bank (OSB) 311.00p 12.27%
Kaz Minerals (KAZ) 299.80p 11.41%
Helios Towers (HTWS) 107.70p 10.46%
JPMorgan Indian Investment Trust (JII) 605.00p 8.04%
Britvic (BVIC) 744.00p 7.54%
Dunelm Group (DNLM) 930.00p 7.51%
FTSE 250 - Fallers
Cineworld Group (CINE) 45.44p -34.03%
Elementis (ELM) 53.15p -16.95%
Marston's (MARS) 51.85p -15.28%
Watches of Switzerland Group (WOSG) 233.20p -13.88%
Centamin (DI) (CEY) 98.16p -13.09%
Capita (CPI) 35.62p -13.08%
Wetherspoon (J.D.) (JDW) 921.00p -12.87%
SIG (SHI) 30.90p -12.86%
National Express Group (NEX) 241.00p -12.68%
Tullow Oil (TLW) 10.91p -12.36%