London close: Stocks turn red in late trading
London stocks dipped back below the waterline to close weaker on Monday, having earlier been boosted by a solid performance from the travel sector.
The FTSE 100 ended the session down 0.18% at 6,472.59, and the FTSE 250 was off 0.51% at 18,136.90.
Sterling was stronger against both of its major trading pairs, however, last gaining 0.24% on the dollar to $1.2698 and advancing 0.17% against the euro to €1.1238.
“The surge in travel- and airline-related names comes on the day when the UK implements a quarantine for overseas travel, perhaps the very definition of shutting stable doors after the horse has bolted,” said Chris Beauchamp, chief market analyst at IG, earlier.
“With lockdowns easing across Europe and no sign of a second infection wave, this move has been staunchly opposed by airlines, and it looks like the market expects the restriction to remain in place for only a limited time.”
Cruise operator Carnival surged 9.92%, while British Airways parent IAG added 1.25%, even as new UK quarantine rules came into effect.
Budget carrier easyJet reversed its earlier momentum, however, to close 1.23% lower.
IAG, easyJet and Ryanair have all started legal proceedings against the government over the quarantine rules.
Oil giants Shell was ahead 2.54% and BP added 0.97% after OPEC+ extended production cuts until the end of July.
"It looks like the oversupply story is being replaced by expectations of higher demand, or at least by hopes that demand will not be as weak as previously feared," said Beauchamp.
Pub company shares rallied, with Marston’s rising 8.26% and Mitchells & Butlers up 6.32% amid reports the government could allow beer gardens to reopen from 22 June - earlier than expected.
On the downside, AstraZeneca slid 2.69% after a report over the weekend that the company has approached US-based Gilead Sciences about a potential merger to create a $240bn drug maker.
Britain's biggest company by market value contacted Gilead informally in May to size up the US company's interest in a deal, Bloomberg reported.
AstraZeneca did not set out any terms and the companies are not in formal talks, it said.
Contracts-for-difference platform Plus500 was 4.45% weaker even as it said full-year revenue and profitability was expected to be in line with consensus expectations as volatile markets in recent weeks represented a gain for its customers.
In broker note action, JD Sports Fashion was under the cosh by 3.79% after a downgrade to ‘underperform’ from ‘sector perform’ at RBC Capital Markets.
RBC said the longer-term margin recovery prospects may be compromised by a shift in customer shopping patterns and to online.
Market Movers
FTSE 100 (UKX) 6,472.59 -0.18%
FTSE 250 (MCX) 18,136.90 -0.51%
techMARK (TASX) 3,833.30 -0.86%
FTSE 100 - Risers
Rolls-Royce Holdings (RR.) 398.40p 11.94%
Carnival (CCL) 1,580.50p 10.41%
BT Group (BT.A) 126.35p 5.34%
Barratt Developments (BDEV) 579.20p 5.27%
Lloyds Banking Group (LLOY) 37.15p 4.52%
Centrica (CNA) 44.55p 4.11%
M&G (MNG) 170.90p 3.48%
ITV (ITV) 91.00p 3.17%
Taylor Wimpey (TW.) 166.45p 3.13%
Berkeley Group Holdings (The) (BKG) 4,507.00p 2.90%
FTSE 100 - Fallers
Ocado Group (OCDO) 1,983.50p -6.57%
Melrose Industries (MRO) 140.70p -5.54%
Intermediate Capital Group (ICP) 1,347.00p -5.01%
Experian (EXPN) 2,738.00p -3.79%
JD Sports Fashion (JD.) 665.00p -3.79%
CRH (CRH) 2,831.00p -3.35%
Smith & Nephew (SN.) 1,685.50p -2.91%
AstraZeneca (AZN) 8,200.00p -2.69%
Aveva Group (AVV) 4,015.00p -2.43%
Hikma Pharmaceuticals (HIK) 2,274.00p -2.40%
FTSE 250 - Risers
Aston Martin Lagonda Global Holdings (AML) 80.70p 12.08%
Dixons Carphone (DC.) 97.65p 8.44%
Marston's (MARS) 75.35p 8.26%
Cineworld Group (CINE) 99.54p 8.20%
Marks & Spencer Group (MKS) 118.90p 6.59%
Stagecoach Group (SGC) 82.00p 6.49%
Mitchells & Butlers (MAB) 227.00p 6.32%
WH Smith (SMWH) 1,393.00p 6.01%
Airtel Africa (AAF) 56.30p 5.83%
Royal Mail (RMG) 190.90p 5.82%
FTSE 250 - Fallers
Renishaw (RSW) 3,758.00p -8.34%
Syncona Limited NPV (SYNC) 222.00p -7.31%
Kainos Group (KNOS) 793.00p -6.71%
Hammerson (HMSO) 128.80p -5.99%
Elementis (ELM) 76.45p -5.73%
Herald Investment Trust (HRI) 1,482.00p -5.73%
Oxford Instruments (OXIG) 1,258.00p -5.70%
Chemring Group (CHG) 257.50p -5.68%
Network International Holdings (NETW) 467.20p -5.62%
Watches of Switzerland Group (WOSG) 300.00p -5.36%