Market Report: Flying Footsie returns towards 7000

The FTSE 100 was able to close over 7,000 as the London market rose another day.

The index dispelled the immediate fear that Tuesday’s rally (after damaging the slides on Monday) was a one-off event. It rose 1.7%, or 117.15 points, ending at 6998.28.

Many market observers were worried that Tuesday’s recovery would be what the city knows as a “dead cat bounce.” This is a phrase that uses the logic that even dead cats bounce when they fall from a sufficient height.

Rebound: The FTSE 100 has dispelled immediate concerns that Tuesday’s rally (after scratching the slides on Monday) will be one-off. It rose 1.7%, or 117.15 points, ending at 6998.28.

However, the performance of a series of bright companies also boosted market share, causing travel, retail and other leisure stocks to rebound twice in a row.

Michael Hewson, Chief Market Analyst at CMC Markets, said:

“Concerns that increased Delta infections will slow economic recovery have been replaced by optimism that better-than-expected corporate reports speak to depressed but never-going consumers. It seems. “

Stock Watch-Foxtons

Foxtons is considering whether to sell its mortgage brokerage division, Alexander Hall.

This sector has been part of London’s real estate agency chain since the 1990s, accounting for approximately 9% of last year’s £ 94m revenue.

Alexander Hall has about 80 staff.

Foxtons said it is considering “strategic options” for the business, which could include sales.

Stocks of small-cap companies that struggled during the coronavirus pandemic despite house prices reaching record levels rose 8.2 percent, or 3.85p, to 50.6p yesterday.

One example is a bullish update from Next (7.5%, or 552p to 7946p), with retailers Marks & Spencer (5.4%, or 7.05p, 138.6p) and Asos (4.4%, or 163p to 3907p) higher. Become.

However, Next was beaten to the top of the Footsey leaderboard by Rolls-Royce. Rolls-Royce makes a lot of money from flight time, so it tends to be better whenever the airline’s share is high.

Engine makers rose 7.8% (6.98p) to 97p, including Premier Inn owner Whitbread (6.1% (173p) up 3012p) and British Airways’ parent company IAG (3012p). Behind the travel-related stocks of. It increased by 5.6% (8.96p) to 169.42p).

The FTSE 250 closed at 22,541.97, 1.9% (422.49 points), as traders were keen on the post-Covid outlook.

WH Smith (6.6%, or 100p, 1614.5p), Carnival (9.4%, or 9.36p, 1465.4p), SSP (7.2%, or 16.2p, 240.6p) all rose, but easyJet is a broker Liberum closed the stock at 810.8p, 4.3% (33.6p), after raising the stock rating from “hold” to “buy”.

However, Cineworld knocked it out of the park, rising 14.9% (8.68p) to 67.06p. This shows that people are still enthusiastic after rival Odeon said it had one million customers in cinemas across Europe last week. I go to the movies on the big screen.

Elsewhere in the FTSE 250, it was reported that US private equity group Clayton Dubilier & Rice is working on another Morrisons bid after the £ 5.5 billion offer was rejected last month.

The supermarket group instead accepted a £ 6.3 billion bid offered by investment group Fortress. The offer is equivalent to 254p, but last night’s Morrisons closing price of 265.1p (1.5%, or 4p increase) indicates that the city is preparing for a bid war.

Miners, including Antofagasta, went higher after copper prices stabilized – the group (4.3% or 58p up against 1422p) saw production decline 3% in the first six months of the year. Did.

Footsie peer Rio Tinto announced 32 years later that it would fund a study assessing the environmental damage to the copper and gold Panguna mines in Papua New Guinea. It has not been decided whether to fund the cleanup of the mine.

Rio (2.3%, or 135p up to 5971p) is trying to regain its reputation after blasting two caves in Australia 46,000 years ago.

The British-Australia Group added that it closed one of four furnaces at its Richards Bay Minerals project in South Africa as the amount of material supplied for burning decreased.

It blamed South Africa’s growing security situation after the arrest of former President Jacob Zuma.

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Market Report: Flying Footsie returns towards 7000

Source link Market Report: Flying Footsie returns towards 7000

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