London equity markets had extended gains by midday on Tuesday, with energy and mining stocks pacing the advance as investors mulled an encouraging reading on the UK manufacturing sector.
The FTSE 100 was up 1.2% at 7,104.49 after a survey showed manufacturing growth surged to a new record high in May as Covid restrictions eased.
The IHS Markit CIPS manufacturing purchasing managers’ index increased to 65.6 from 60.9 in April. Although this was a little weaker than the flash estimate of 66.1, it was above July 1994’s previous record high of 61.0.
A level below 50.0 signals contraction, while a level above indicates expansion.
Markit’s new orders index jumped to 68.1 in May from 61.9 in April, hitting the highest level since the survey began in 1992.
Looser pandemic restrictions and high levels of pent-up demand meant that the rapid revival in labour market conditions continued, with staffing levels also rising at a record pace, the survey found.
Rob Dobson, director at IHS Markit, said: “The UK PMI surged to an unprecedented high in May, as record growth of new orders and employment supported one of the steepest increases in production volumes in the near 30-year survey history.
“Growth is being boosted by the unlocking of economies from Covid restrictions and ongoing vaccination programs. This is being felt across the globe, as highlighted by a record rise in new export business during the latest survey month.”
In equity markets, miners were the standout gainers as copper and iron prices rose, with Anglo American, Antofagasta, BHP, Rio and Glencore all higher.
Oil giants BP and Shell gushed higher as oil prices advanced, with Brent crude above $70 a barrel for the first time since March after OPEC predicted tighter markets.
Waste management company Biffa rallied after saying it swung to a full-year pre-tax loss but striking an upbeat note on the outlook.
DIY retailer Wickes – which was recently spun off from Travis Perkins – gained as it reported a surge in year-to-date sales and lifted its full-year profit expectations.
On the downside, pharmaceuticals group Vectura tumbled as it traded without entitlement to the dividend.
Outside the FTSE 350, Amigo Holdings slid as it said it faces insolvency after the High Court rejected a rescue plan by the guarantor lender that would have seen compensation payments for mis-selling capped.
Market Movers
FTSE 100 (UKX) 7,104.49 1.17%
FTSE 250 (MCX) 22,885.29 0.89%
techMARK (TASX) 4,403.73 0.48%
FTSE 100 – Risers
Anglo American (AAL) 3,262.50p 4.07%
Rio Tinto (RIO) 6,304.00p 3.96%
BHP Group (BHP) 2,202.50p 3.74%
Evraz (EVR) 661.00p 3.67%
Royal Mail (RMG) 599.40p 3.59%
WPP (WPP) 1,009.00p 3.59%
Glencore (GLEN) 332.95p 3.58%
Antofagasta (ANTO) 1,599.50p 3.56%
Intermediate Capital Group (ICP) 2,173.00p 3.33%
Weir Group (WEIR) 1,982.00p 3.23%
FTSE 100 – Fallers
HSBC Holdings (HSBA) 449.95p -1.18%
Burberry Group (BRBY) 2,116.00p -0.94%
Standard Chartered (STAN) 505.00p -0.55%
London Stock Exchange Group (LSEG) 7,534.00p -0.53%
Lloyds Banking Group (LLOY) 49.67p -0.45%
Ocado Group (OCDO) 1,882.50p -0.34%
Standard Life Aberdeen (SLA) 274.70p -0.11%
Imperial Brands (IMB) 1,600.00p 0.00%
NATWEST GROUP PLC ORD 100P (NWG) 207.00p 0.00%
British American Tobacco (BATS) 2,714.00p 0.04%
FTSE 250 – Risers
Tullow Oil (TLW) 54.88p 6.98%
4Imprint Group (FOUR) 3,065.00p 6.61%
Wickes Group (WIX) 269.00p 5.08%
Ferrexpo (FXPO) 469.20p 4.73%
Biffa (BIFF) 306.00p 4.62%
IWG (IWG) 376.50p 4.58%
Energean (ENOG) 805.50p 4.54%
Centamin (DI) (CEY) 114.65p 4.51%
Tyman (TYMN) 501.00p 3.83%
Mitie Group (MTO) 70.50p 3.83%
FTSE 250 – Fallers
Vectura Group (VEC) 139.00p -12.58%
Hammerson (HMSO) 38.95p -2.50%
Just Group (JUST) 107.40p -2.36%
Aston Martin Lagonda Global Holdings (AML) 2,066.00p -1.90%
UK Commercial Property Reit Limited (UKCM) 78.10p -1.76%
Marks & Spencer Group (MKS) 162.90p -1.51%
Bytes Technology Group (BYIT) 494.00p -1.20%
Investec (INVP) 306.80p -1.13%
Workspace Group (WKP) 896.00p -1.10%
Virgin Money UK (VMUK) 209.00p -0.99%
