ADVFN Morning London Market Report: Monday 22 February 2021

Share On Facebook
share on Linkedin
Print

London open: Stocks fall as investors eye lockdown easing plan

© ADVFN

London stocks fell in early trade on Monday as investors awaited details on the government’s roadmap out of lockdown.

At 0840 GMT, the FTSE 100 was down 0.7% at 6,578.89, while sterling was 0.2% lower against the dollar at 1.3995.

Spreadex analyst Connor Campbell said market participants didn’t appear too happy about the various lockdown-easing reports doing the rounds.

“Though Boris Johnson will reveal the official timeline later today, the weekend papers were full of details on the road out of lockdown 3.0. Schools are expected to re-open from March 8th, while people will be able to meet outside in groups of 6 from March 29th, just in time for Easter,” he said.

“Those steps have been prioritised ahead of the re-opening of restaurants and non-essential retail, which will not occur until April (daily covid-19 numbers permitting).

“This delay to the retail re-opening helps explain why the FTSE and pound have both opened the week in the red. For while investors are no doubt happy the country is loosening the restrictions once again, the reality is they don’t hold positions in schools and picnics.”

Worries about rising inflation also weighed sentiment. Richard Hunter, head of markets at Interactive Investor, said: “With commodity prices continuing to rise and with an oil price now up 23% this year, helped by freezing conditions in the US and crimped supply, thoughts are also turning slowly to the possibility of inflation becoming a factor later in the year.”

In equity markets, pub group Mitchells & Butlers was in the red after saying it had been burning up to £35m in cash a month since the start of the year as it launched a £351m placing to bolster its balance sheet from the coronavirus pandemic.

G4S fell sharply after Canadian security services firm GardaWorld said it will not raise its offer for the company, paving the way for US-based Allied Universal to buy the London-listed security services firm.

Smith & Nephew was knocked lower by a downgrade to ‘hold’ at Commerzbank, while B&M European Value Retail was weaker after a downgrade to ‘hold’ at Peel Hunt.

On the upside, Glencore was boosted by an upgrade to ‘overweight’ at JPMorgan. Miners were firmer overall as metals prices rallied, with BHPAntofagastaRio and Anglo American all higher.

 

Top 10 FTSE 100 Risers

Sponsored by
ii
Buy Sell
76.4% of retail CFD accounts lose money.
# Name Change Pct Change Cur Price
1 Tui Ag +3.92% +14.00 370.80
2 Flutter Entertainment Plc +3.01% +410.00 14,035.00
3 Easyjet Plc +2.60% +21.60 852.80
4 Carnival Plc +2.23% +32.00 1,470.00
5 International Consolidated Airlines Group S.a. +1.42% +2.35 168.10
6 Whitbread Plc +1.05% +36.00 3,454.00
7 Standard Chartered Plc +0.95% +4.70 497.20
8 Intercontinental Hotels Group Plc +0.94% +48.00 5,158.00
9 Hsbc Holdings Plc +0.92% +3.90 427.85
10 Bhp Group Plc +0.83% +19.00 2,296.50

 

Top 10 FTSE 100 Fallers

Sponsored by
ii
Buy Sell
76.4% of retail CFD accounts lose money.
# Name Change Pct Change Cur Price
1 Smith & Nephew Plc -4.17% -61.50 1,412.00
2 Ocado Group Plc -3.60% -92.00 2,467.00
3 Kingfisher Plc -3.01% -8.30 267.90
4 Scottish Mortgage Investment Trust Plc -2.75% -37.00 1,309.00
5 Fresnillo Plc -2.72% -26.80 957.20
6 Rentokil Initial Plc -2.55% -12.70 485.80
7 Rightmove Plc -2.47% -15.80 622.80
8 Intertek Group Plc -2.39% -136.00 5,558.00
9 Spirax-sarco Engineering Plc -2.29% -260.00 11,070.00
10 Experian Plc -2.21% -55.00 2,434.00

 

Europe open: Inflation, bond yield fears dampen sentiment

European shares fell at the opening on on Monday as caution over rising bond yields, and inflation overshadowed optimism of an economic recovery as Covid vaccine rollouts gathered pace.

The pan-European STOXX 600 index was down 1.15% at 0914 GMT with all major regional bourses lower.

Britain’s FTSE 100 was 0.96% lower as the government prepared to release details of its planned path out of Covid-19 lockdowns.

Weekend reports suggested schools would re-open from March 8, while people will be able to meet outside in groups of six from March 29, just in time for Easter.

“Those steps have been prioritised ahead of the re-opening of restaurants and non-essential retail, which will not occur until April (daily covid-19 numbers permitting),” said Spreadex analyst Connor Campbell.

“This delay to the retail re-opening helps explain why the FTSE and pound have both opened the week in the red. For while investors are no doubt happy the country is loosening the restrictions once again, the reality is they don’t hold positions in schools and picnics.”

Investors were also eyeing a speech from European Central Bank President Christine Lagarde’s on stability, economic co-ordination and governance in the EU later in the day.

In equity news, shares in security firm G4S fell 9.81% as Canada’s GardaWorld declared its improved 235p-per-share offer as final.

The announcement disappointed investors looking for a better deal than the 245p-a-share offer from rival Allied Universal which was accepted by the G4S board back last year.

“G4S has been a business that has seen its fair share of problems over the past three years, its share price down sharply from the record highs seen back in July 2017,” said CMC Markets analyst Michael Hewson.

“Last year the company reported a £91m loss after writing down the value of its cash handling business, and has also been involved in a number of incidents that have damaged its credibility. The shareholder hold-outs need to accept that they are unlikely to wring any more out of this particular bid, and accept the money on the table now, with the shares falling back sharply in early trade.”

 

Monday newspaper round-up: Aircraft orders, John Lews, Gap

Orders for new aircraft all but dried up in January as the airline industry continued to be buffeted by the Covid-19 pandemic. Just four commercial aircraft orders were placed last month, according to ADS, the UK trade organisation. That’s the worst January on record for orders, down from 296 in January 2020. – Guardian

John Lewis is understood to be considering a fresh round of store closures, underscoring the toll that the pandemic is taking on Britain’s deserted high streets. The 156-year-old retailer is understood to be reconsidering the scale of its national network of branches, less than eight months after it announced the closure of eight stores to cope with the impact of coronavirus. – Guardian

Former Chancellor Lord Darling has warned Rishi Sunak against “choking off” the Covid recovery with higher taxes amid rising fears that business could be hit with soaring bills within months. Lord Darling, who led the UK bank bailout during the 2008 financial crisis, said the Chancellor should resist the temptation to raise taxes for at least two years despite a record peacetime deficit likely to approach £400bn in the current financial year. – Telegraph

The Treasury is coming under pressure to reform an “unfair” system that excludes private investors from the vast majority of flotations in Britain. Two million private investors are being unfairly disadvantaged because they are excluded from buying shares in most initial public offerings, according to the heads of Hargreaves Lansdown, AJ Bell and Interactive Investor, the three biggest trading platforms. – The Times

Gap is at war with its landlords after telling them it plans to hand back the keys to all its shops in Britain and Ireland in July in a move that will mean the loss of hundreds of retail jobs. The American casual fashion group is exploring becoming an online-only business in Europe, in line with the growing trend of retailers abandoning high streets and city centres that have been ravaged by the pandemic. – The Times

 

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20210228 04:06:29