London stocks had pared gains to trade just a touch firmer by midday on Friday, although travel and leisure plays continued their march higher after recent weakness.
The FTSE 100 was up 0.1% at 7,020.95.
Travel and leisure stocks were the biggest gainers, recovering from Covid-related losses earlier in the week. InterContinental Hotels, British Airways parent IAG, Premier Inn owner Whitbread, engine maker Rolls-Royce, Cineworld, Tui, Wetherspoons and Wizz Air all pushed up.
The sector was also lifted by news that US President Joe Biden may lift travel restrictions with Europe.
IG market analyst Joshua Mahony said: “Airlines and high-street names are enjoying some welcome respite after a period which has seen those sectors weighed down by fears around a surge in Covid cases.
“With UK Covid cases up to a six-month high yesterday, the government’s plans to reopen in the hope that hospitalisations fall short of max NHS capacity provide a major risk of further future restrictions. Cineworld is a particular outperformer, with the heavily shorted stock finally seeing a pop as traders look for bargains.”
Whitbread was given the extra boost of an upgrade to ‘buy’ from ‘add’ at Peel Hunt, which said the shares have been oversold on reopening fears.
Sales, marketing and support services group DCC rose after saying it traded “very well” in the first quarter, with operating profit growth well ahead of the prior year and modestly ahead of expectations.
Home repairs and improvements business HomeServe gained after it backed its full-year guidance ahead of its annual meeting.
On the downside, luxury goods maker Burberry slumped even after it reported a sharp rise in first-quarter sales and maintained full-year guidance as younger customers were attracted to the brand.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said that Gobbetti’s exit is still causing concern.
“A big obstacle waiting to trip up the company on this catwalk of recovery is the departure of CEO Marco Gobbetti. He has been seen as the turnaround Czar for Burberry and investors are questioning the company’s ability to keep driving through the strategic turnaround without him in the front row.
“Finding the right replacement to fit his large shoes won’t be an easy task. Shares were down 2% with investors still uncertain about the direction of the company in the age after Gobbetti.'”
Rio Tinto was also in the red after it posted a 12% fall in quarterly iron ore shipments as storms and labour shortages hit its Pilbara operations in Western Australia. Other miners followed suit, with Antofagasta, Anglo American and Glencore also down.
Market Movers
FTSE 100 (UKX) 7,020.95 0.13%
FTSE 250 (MCX) 22,531.67 0.14%
techMARK (TASX) 4,372.52 0.20%
FTSE 100 – Risers
InterContinental Hotels Group (IHG) 4,771.00p 3.13%
Whitbread (WTB) 2,956.00p 2.85%
DCC (CDI) (DCC) 6,034.00p 2.44%
British American Tobacco (BATS) 2,855.50p 2.24%
International Consolidated Airlines Group SA (CDI) (IAG) 168.86p 2.12%
Rentokil Initial (RTO) 516.80p 1.93%
Imperial Brands (IMB) 1,607.00p 1.64%
Flutter Entertainment (CDI) (FLTR) 12,250.00p 1.58%
Rolls-Royce Holdings (RR.) 92.47p 1.46%
Reckitt Benckiser Group (RKT) 6,436.00p 1.42%
FTSE 100 – Fallers
Burberry Group (BRBY) 1,986.50p -4.03%
Just Eat Takeaway.Com N.V. (CDI) (JET) 5,724.00p -1.94%
Rio Tinto (RIO) 6,025.00p -1.90%
Anglo American (AAL) 2,918.00p -1.85%
Weir Group (WEIR) 1,825.50p -1.72%
Ocado Group (OCDO) 1,801.50p -1.56%
Glencore (GLEN) 315.50p -1.42%
Spirax-Sarco Engineering (SPX) 14,260.00p -1.25%
Barclays (BARC) 167.34p -1.05%
HSBC Holdings (HSBA) 405.40p -0.82%
FTSE 250 – Risers
Cineworld Group (CINE) 62.58p 9.18%
TUI AG Reg Shs (DI) (TUI) 329.10p 5.51%
Ninety One (N91) 236.60p 3.05%
Biffa (BIFF) 330.50p 2.96%
Indivior (INDV) 154.30p 2.66%
Mitchells & Butlers (MAB) 265.00p 2.47%
Pagegroup (PAGE) 622.50p 2.47%
Trainline (TRN) 291.80p 2.39%
AJ Bell (AJB) 418.40p 2.10%
Network International Holdings (NETW) 362.40p 2.08%
FTSE 250 – Fallers
Trustpilot Group (TRST) 350.20p -7.16%
TI Fluid Systems (TIFS) 294.00p -2.65%
Helios Towers (HTWS) 160.40p -2.31%
Clarkson (CKN) 3,180.00p -2.15%
Chrysalis Investments Limited NPV (CHRY) 235.00p -2.08%
Cairn Energy (CNE) 141.00p -2.02%
Just Eat Takeaway.Com N.V. (CDI) (JET) 5,724.00p -1.94%
Morgan Sindall Group (MGNS) 2,150.00p -1.60%
Jupiter Fund Management (JUP) 283.40p -1.60%
Hochschild Mining (HOC) 156.50p -1.57%
