London close: Stocks finish firmer for eighth day straight
London stocks pushed even further into positive territory by the close on Wednesday, as optimism over a Covid-19 vaccine continued to underpin sentiment.
The FTSE 100 ended the session up 1.35% at 6,382.10, and the FTSE 250 was ahead 1.64% at 19,340.19.
Sterling was in the red, however, last falling 0.54% against the dollar to $1.32, and losing 0.12% on the euro to €1.1220.
It was the eighth consecutive day of gains for London’s top-flight index, which rallied sharply on Monday and Tuesday after a Covid vaccine being developed by Pfizer and BioNTech was shown to be 90% effective.
“The FTSE 100 hit a five month high as the bullish sentiment on the back of a possible Covid-19 drug is still doing the rounds,” said CMC Markets analyst David Madden.
“In London, property, banking and utility stocks are some of the biggest gainers.”
Madden noted that in the latest reporting season, UK banks set aside smaller-than-expected amounts for bad debt provisions, leading to a feeling that “the worst was over” with respect to credit loss provisions.
“In light of the hope generated on the back of the potential coronavirus vaccine, traders are snapping up banking stocks because they feel the sector won’t be hit that hard after all.”
In corporate news, defence aerospace group BAE Systems rallied 2.28% after it said underlying earnings would be slightly higher than forecast as order intake levels moved ahead of original pre-Covid planning.
Flutter Entertainment gained 5% as it upgraded its earnings forecast for business outside the US but said the loss at its American gambling operation would be bigger than expected after it spent to acquire customers.
On the downside, Workspace fell 2.51% after saying it swung to a loss in the first half, with income hit as customers vacated or downsized due to the Covid-19 pandemic, as it deferred a decision on dividend payments.
J D Wetherspoon managed to close flat following a session spent in the red, after the pub chain reported a sharp drop in sales and boss Tim Martin criticised "regulatory hyperactivity" affecting Britain's pubs.
In broker note action, British Airways owner IAG ascended 8.03% after an upgrade to ‘buy’ from ‘neutral’ at Bank of America Merrill Lynch, while Meggitt was knocked 4.37% lower by a downgrade to ‘sell’ at Societe Generale.
Market Movers
FTSE 100 (UKX) 6,382.10 1.35%
FTSE 250 (MCX) 19,340.19 1.64%
techMARK (TASX) 3,958.22 1.05%
FTSE 100 - Risers
Sainsbury (J) (SBRY) 205.70p 0.00%
Ferguson (FERG) 8,000.00p 0.00%
Relx plc (REL) 1,803.00p 0.00%
Pennon Group (PNN) 1,044.00p 0.00%
Standard Life Aberdeen (SLA) 267.00p 0.00%
Intermediate Capital Group (ICP) 1,525.00p 0.00%
Evraz (EVR) 375.40p 0.00%
Scottish Mortgage Inv Trust (SMT) 1,012.00p 0.00%
Fresnillo (FRES) 1,099.50p 0.00%
Lloyds Banking Group (LLOY) 32.14p 0.00%
FTSE 100 - Fallers
Imperial Brands (IMB) 1,336.50p 0.00%
Coca-Cola HBC AG (CDI) (CCH) 2,144.00p 0.00%
Rio Tinto (RIO) 4,775.50p 0.00%
Experian (EXPN) 3,018.00p 0.00%
Prudential (PRU) 1,267.00p 0.00%
Halma (HLMA) 2,450.00p 0.00%
Smith & Nephew (SN.) 1,583.50p 0.00%
Ocado Group (OCDO) 2,164.00p 0.00%
Persimmon (PSN) 2,682.00p 0.00%
Royal Dutch Shell 'A' (RDSA) 1,179.20p 0.00%
FTSE 250 - Risers
Ninety One (N91) 228.00p 0.00%
BMO Commercial Property Trust Limited (BCPT) 73.50p 0.00%
4Imprint Group (FOUR) 2,650.00p 0.00%
Jupiter Fund Management (JUP) 269.40p 0.00%
Trainline (TRN) 400.00p 0.00%
Great Portland Estates (GPOR) 698.00p 0.00%
Polar Capital Technology Trust (PCT) 2,105.00p 0.00%
Countryside Properties (CSP) 418.20p 0.00%
Telecom Plus (TEP) 1,338.00p 0.00%
Spectris (SXS) 2,649.00p 0.00%
FTSE 250 - Fallers
Diversified Gas & Oil (DGOC) 111.80p 0.00%
Impax Environmental Markets (IEM) 421.00p 0.00%
Provident Financial (PFG) 291.00p 0.00%
3i Infrastructure (3IN) 302.50p 0.00%
Marks & Spencer Group (MKS) 120.45p 0.00%
ICG Enterprise Trust (ICGT) 900.00p 0.00%
Tritax Big Box Reit (BBOX) 161.70p 0.00%
Renishaw (RSW) 5,500.00p 0.00%
Savills (SVS) 955.00p 0.00%
Ashmore Group (ASHM) 390.40p 0.00%