London close: Stocks mixed amid growing Covid concern in Europe

by | Nov 22, 2021

London stocks closed in a mixed state on Monday, with the top-flight index lifted by strength in the telecoms sector, although worries remained over tightening Covid-19-related restrictions in Europe.
The FTSE 100 ended the session up 0.44% at 7,255.46, while the FTSE 250 slipped 0.27% to 23,429.70.

Sterling was in the red against its main trading pairs, last falling 0.23% on the dollar to $1.3420, and slipping 0.02% against the euro to change hands at €1.1913.

“The afternoon announcement of the confirmation of Jay Powell as Federal Reserve chairman for another four years helped provide an afternoon uplift,” said CMC Markets chief market analyst Michael Hewson.

“This news has helped outweigh the broader negativity that has seen the euro slide back towards its recent lows, as protests in Europe over new Covid-19 restrictions acted as an initial broader drag on sentiment.”

Concerns about tightening coronavirus restrictions in Europe were growing, with Austria implementing a national lockdown, and German authorities mulling similar plans.

On the economic front, footfall across UK retail destinations increased week-on-week in the seven days ended 20 November, as the Christmas trading period began in earnest.

According to retail experts Springboard, footfall in UK retail destinations rose 4.1% last week, with increases being seen on six out of seven days, a marked improvement when measured against the previous week’s 1.5% improvement.

In high streets, the increase was even greater at 6.2%, nearly double the rise of 3.3% in shopping centres and far ahead of the 0.4% uptick seen in retail parks.

In equity markets, BT Group and Vodafone rallied, rising 2.33% and 3.19% respectively, after private equity firm KKR made a $12bn takeover approach to Telecom Italia.

“There has been a lot of speculation about a possible takeover of BT of late, so the move by KKR creates some further excitement that Altice’s Patrick Drahi could launch a bid,” said Neil Wilson, chief market analyst at Markets.com.

BHP Group advanced 3.11% after it and Woodside Petroleum signed a AUD 40bn petroleum merger deal, which would see Woodside acquire BHP’s petroleum assets in return for a 48% in the combined company.

Peers in the mining sector were also on the front foot as copper prices advanced, with Antofagasta up 5.01%, Rio Tinto ahead 1.9% and Anglo American adding 1.13%.

Diploma surged 7.99% after it reported a 68% jump in full-year pre-tax profit to £141.9m amid improved demand and backed its outlook for the 2022 financial year.

Marks & Spencer shares sparkled, rising 1.95% following a report that US private equity firm Apollo Global Management was considering a buyout.

“Apollo will be weighing up the future value of Marks and Spencer’s e-commerce tie-up with Ocado, and speculation that its success so far may lead the retailer to buy out Ocado’s 50% share indicates the weight of expectation about its growth prospects,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

“However, shares have surged more than 27% since those impressive results and if the price continues to climb, there is a chance Apollo may turn into more of a reluctant suitor.”

On the downside, Hochschild Mining tumbled 27.22% after it said it would fight what it called an “illegal” plan by Peru to close two of its mines on environmental grounds.

Polymetal and Fresnillo both lost their shine as gold prices fell, with the two closing down 4.38% and 0.71%, respectively.

Market Movers

FTSE 100 (UKX) 7,255.46 0.44%
FTSE 250 (MCX) 23,429.70 -0.27%
techMARK (TASX) 4,540.08 -0.09%

FTSE 100 – Risers

Antofagasta (ANTO) 1,479.00p 5.01%
Vodafone Group (VOD) 117.24p 3.19%
BHP Group (BHP) 1,942.80p 3.11%
Royal Mail (RMG) 512.80p 2.87%
BT Group (BT.A) 164.70p 2.52%
BP (BP.) 334.25p 2.36%
Barclays (BARC) 194.74p 1.98%
Rio Tinto (RIO) 4,539.50p 1.90%
Imperial Brands (IMB) 1,613.00p 1.83%
Associated British Foods (ABF) 1,929.50p 1.55%

FTSE 100 – Fallers

Polymetal International (POLY) 1,410.00p -4.28%
Darktrace (DARK) 506.50p -3.98%
ITV (ITV) 118.75p -1.62%
Flutter Entertainment (CDI) (FLTR) 11,375.00p -1.47%
Berkeley Group Holdings (The) (BKG) 4,393.00p -1.37%
Sage Group (SGE) 789.00p -1.33%
Aveva Group (AVV) 3,399.00p -1.16%
Halma (HLMA) 3,131.00p -1.07%
SSE (SSE) 1,580.50p -1.00%
Croda International (CRDA) 9,936.00p -0.99%

FTSE 250 – Risers

Diploma (DPLM) 3,484.00p 8.74%
Harbour Energy (HBR) 401.00p 7.80%
Vivo Energy (VVO) 110.00p 4.36%
Liontrust Asset Management (LIO) 2,210.00p 4.25%
Investec (INVP) 386.80p 3.81%
Bridgepoint Group (Reg S) (BPT) 550.00p 3.19%
Virgin Money UK (VMUK) 181.55p 3.01%
XP Power Ltd. (DI) (XPP) 5,300.00p 2.91%
CMC Markets (CMCX) 247.50p 2.70%
Helios Towers (HTWS) 163.60p 2.38%

FTSE 250 – Fallers

Hochschild Mining (HOC) 119.80p -27.22%
AO World (AO.) 124.00p -5.70%
Petropavlovsk (POG) 21.04p -5.48%
Cineworld Group (CINE) 58.16p -5.07%
Centamin (DI) (CEY) 97.00p -4.67%
Indivior (INDV) 242.00p -4.35%
Trustpilot Group (TRST) 287.80p -4.19%
National Express Group (NEX) 219.60p -3.68%
Euromoney Institutional Investor (ERM) 989.00p -3.60%
Network International Holdings (NETW) 307.70p -3.48%

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