London stocks ended the last full trading day before Christmas in the black, with sentiment underpinned by news that the Omicron variant is less likely to land people in hospital.
The FTSE 100 closed up 0.4% at 7,373.34 after Health Secretary Sajid Javid confirmed that no further restrictions will be announced in England before Christmas and said there were no plans for any further announcements this week.
Also helping to boost the mood were studies from England, Scotland, South Africa and Denmark showing that people with Omicron were less likely to end up in hospital than those with other variants of Covid-19. In addition, the UK Health Security Agency said late in the day that early findings had shown that people catching Omicron were 50% to 70% less likely to need hospital care compared with previous variants.
Chris Beauchamp, chief market analyst at IG, said: “It might not be like some of the Santa rallies of years past, but at least markets have managed to claw their way higher this week, and as the final full day of London trading before Christmas marches to its close, stocks look to be in stronger form.
“Given how light the calendar has been this week it is hard to pin the move on anything firm, but at least the Omicron situation appears to be lessening in the scope of its potential dangers, providing one source of optimism. And the economic recovery is still on track, as the rebound in durable goods orders shows.
“Markets are now firmly into the festive period, and traditionally this is a better one for stocks, even if it is low liquidity and lack of news that drives the move higher. 2021 proved to be a solid one across the board for equities, even if the year didn’t match up to all the optimistic expectations prevailing in January.”
In equity markets, bookmaker Flutter Entertainment was the top gainer on the FTSE 100 after it announced the acquisition of Italian online gaming operator Sisal from CVC Capital Partners Fund VI for €1.91bn in cash.
Travel and hospitality-related stocks were the best performers amid relief there will be no further restrictions for now. Caterer Compass, BA and Iberia owner IAG, engine maker Rolls-Royce, GKN owner Melrose, easyJet, Wetherspoons, Wizz Air and Tui all rose.
Market Movers
FTSE 100 (UKX) 7,373.34 0.43%
FTSE 250 (MCX) 23,266.75 0.81%
techMARK (TASX) 4,548.42 0.36%
FTSE 100 – Risers
Flutter Entertainment (CDI) (FLTR) 11,575.00p 2.39%
Compass Group (CPG) 1,659.00p 2.31%
M&G (MNG) 199.40p 2.31%
Aveva Group (AVV) 3,428.00p 2.30%
Melrose Industries (MRO) 158.05p 2.23%
International Consolidated Airlines Group SA (CDI) (IAG) 144.04p 2.17%
Rolls-Royce Holdings (RR.) 120.84p 2.11%
Smith (DS) (SMDS) 384.70p 1.91%
Abrdn (ABDN) 241.30p 1.77%
Phoenix Group Holdings (PHNX) 649.80p 1.72%
FTSE 100 – Fallers
Dechra Pharmaceuticals (DPH) 5,070.00p -2.31%
Evraz (EVR) 602.00p -2.15%
British American Tobacco (BATS) 2,744.50p -1.98%
B&M European Value Retail S.A. (DI) (BME) 613.20p -1.00%
Hikma Pharmaceuticals (HIK) 2,192.00p -0.90%
BT Group (BT.A) 168.70p -0.71%
Imperial Brands (IMB) 1,611.50p -0.68%
Avast (AVST) 612.80p -0.55%
Croda International (CRDA) 9,906.00p -0.36%
Admiral Group (ADM) 3,107.00p -0.32%
FTSE 250 – Risers
Aston Martin Lagonda Global Holdings (AML) 1,344.50p 4.47%
Rank Group (RNK) 153.20p 4.22%
Watches of Switzerland Group (WOSG) 1,466.00p 3.97%
Chrysalis Investments Limited NPV (CHRY) 238.00p 3.93%
Syncona Limited NPV (SYNC) 219.00p 3.79%
National Express Group (NEX) 251.20p 3.63%
Caledonia Investments (CLDN) 3,890.00p 3.60%
IWG (IWG) 288.90p 3.44%
Mitchells & Butlers (MAB) 246.80p 3.44%
Network International Holdings (NETW) 292.00p 3.40%
FTSE 250 – Fallers
Reach (RCH) 263.00p -5.40%
Capricorn Energy (CNE) 185.30p -2.88%
Darktrace (DARK) 413.80p -2.77%
RHI Magnesita N.V. (DI) (RHIM) 3,224.00p -2.07%
Harbour Energy (HBR) 352.80p -2.00%
Ferrexpo (FXPO) 299.40p -1.64%
Lancashire Holdings Limited (LRE) 500.50p -1.48%
Pets at Home Group (PETS) 462.40p -1.41%
Renishaw (RSW) 4,806.00p -1.07%
Wood Group (John) (WG.) 186.70p -1.01%
