Damaged bitcoin recovers losses as oil rallies hopes of recovery
VSConsumer-related stocks helped tip London markets into the green, after two weeks of decline, helped by a weekend of easing Covid restrictions.
“It looks like investors had a good weekend and realized how many people took advantage of the newly restored opportunities as well,” said Danni Hewson, financial analyst at AJ Bell.
“From movie theaters to restaurants, from stores to bingo halls, real life has translated into share gains for companies like Premier Foods, owner of Primark, The Restaurant Group and Rank Group.”
The domestically oriented FTSE 250 The index added 84.31 points to close at 22,483. Gaming Company Rank group led the rankings from 14.2p to 196.2p, followed by Mr. Kipling’s parent Premier Foods, who won 6p to 107.6p.
Frankie & Benny owner joined them in the top 10 The catering group, which added 6.4p to 128.4p, as well as the Wetherspoon ad channel.
Similar types of blue chip companies helped the FTSE 100 close in positive territory, although the gains were tempered by miners who mostly fell after warnings on China’s commodity prices. Meanwhile, global equities struggled to gain momentum as investors waited for major inflation readings in the United States for guidance on monetary policy. The London benchmark FTSE 100 edged up 33.54 points to close at 7051.59
Catering company Compass Group led the charge, up 43p to £ 15.82. Gambling companies Entain and Flutter Entertainment also finished in the top 10, earning 35.5p to £ 16.14 and 270p to £ 13.20 respectively. They were followed by the hoteliers Intercontinental Hotels Group and Whitbread, which rose from 98p to £ 49.22 and from 59p to £ 31.50, respectively.
Heavy oil stocks also performed well as oil prices prolonged Friday’s rally and climbed higher after Iran said gaps remained in negotiations to reach a deal to end the US sanctions on its gross. Iran said there were still differences around when countries would return to compliance with the original 2015 nuclear deal, allaying concerns about a rapid ramp-up in the Persian Gulf nation’s production.
While the market expects supply from the Islamic Republic to resume by the end of the summer, the recovery in demand will be strong enough to absorb it, according to Goldman Sachs. The bank expects Brent futures to hit $ 80 (£ 57) a barrel in the coming months.
Royal Dutch Shell added 10.4 pence to £ 13.50, while BP increased from 4.2p to 316.4p.
However, the miners, including Fresnillo, Antofagasta, BHP and Evraz, dominated the bottom of the standings and were pulling on the index. RBC also lowered its price target on Chilean miner Antofagasta.
Elsewhere among companies, shares of software company FTSE 250 Kainos fell 25 pence to £ 13.87, despite its annual pre-tax profit more than doubling in an eleventh consecutive year of growth, rising 124% to £ 57.1million for the year until March. Revenue rose 31% to £ 234.7million, while bookings rose 6%.