London midday: Stocks maintain gains on lockdown easing hopes

London stocks were still in the black by midday on Monday as investors welcomed news that several countries were set to ease their lockdowns, even if the UK was not there yet.

The FTSE 100 was up 1.4% at 5,832.60, as Prime Minister Boris Johnson returned to work after contracting Covid-19, cautioning that it was too early to lift the lockdown.

Johnson said progress was being made but that the UK was still at a point of "maximum risk" and must not end the near-shutdown of the economy too early.

With divisions in his cabinet about how and when to ease restrictions he said a premature relaxation would risk a disastrous "second spike" of the virus that would undo the work done so far. He urged businesses, eager to resume trading, to be patient though he understood their frustration.

Spreadex analyst Connor Campbell said: "With countries across the world - notably France, Italy, Spain, Australia and New Zealand - aiming to ease some of their lockdown measures this week or next as they try to find the ‘new normal’, the markets rebounded hard on Monday.

"Though we have no idea when the terms of lockdown will be altered, let alone ended, in the UK, the examples set by its global, and especially European, peers still sent the FTSE sharply higher.

"What happens in those countries easing restrictions should be illustrative for the UK government, and could help dictate what the returning Boris Johnson and his cabinet choose to do next. This is especially true of Italy - the first European country to go into lockdown conditions seven weeks ago, it is sure to be the most scrutinised nation when it comes to assessing what measures can be lifted, and when."

Sentiment was also lifted after the Bank of Japan pledged to buy an unlimited amount of government bonds and increase purchases of corporate debt to deal with intensifying conditions caused by the Covid-19 emergency.

In equity markets, industrial equipment rental company Ashtead was the top performer on the FTSE 100 after saying it would have free cash flow under all downside scenarios during the Covid-19 crisis despite the virus having an impact on its business.

Elsewhere, luxury brand Burberry, Premier Inn owner Whitbread and cruise operator Carnival - all of which have been hit hard on concerns about the impact of the pandemic - gained ground amid the prospect of lockdown easing.

InterContinental Hotels rose after saying it has secured new financing arrangements taking its total available liquidity to $2bn.The company added that it expected first quarter global RevPAR fell by 55% in March, for a first quarter fall of 25% - in line with a forecast given last month.

Housebuilder Redrow rallied as it announced plans for a phased return to construction on 18 May.

On the downside, Aston Martin was knocked lower by a downgrade to ‘sell’ at Goldman Sachs, while Close Brothers was lower after a downgrade to ‘underperform’ at Jefferies.

Market Movers

FTSE 100 (UKX) 5,832.60 1.40%
FTSE 250 (MCX) 16,060.35 2.38%
techMARK (TASX) 3,540.03 1.84%

FTSE 100 - Risers

Ashtead Group (AHT) 1,958.50p 7.02%
Centrica (CNA) 34.11p 5.67%
Burberry Group (BRBY) 1,348.50p 4.45%
Legal & General Group (LGEN) 193.90p 4.39%
Whitbread (WTB) 2,766.00p 4.34%
InterContinental Hotels Group (IHG) 3,507.00p 4.31%
Carnival (CCL) 885.80p 4.31%
CRH (CRH) 2,385.00p 4.24%
Aveva Group (AVV) 3,377.00p 4.20%
Pearson (PSON) 450.50p 4.07%

FTSE 100 - Fallers

Berkeley Group Holdings (The) (BKG) 4,219.00p -2.61%
Persimmon (PSN) 2,157.00p -1.64%
Pennon Group (PNN) 1,104.50p -1.47%
Sainsbury (J) (SBRY) 198.85p -1.41%
Taylor Wimpey (TW.) 149.85p -1.12%
Morrison (Wm) Supermarkets (MRW) 186.80p -0.74%
Barratt Developments (BDEV) 514.40p -0.66%
Severn Trent (SVT) 2,361.00p -0.42%
Just Eat Takeaway.Com N.V. (CDI) (JET) 7,730.00p -0.39%
Tesco (TSCO) 235.20p -0.38%

FTSE 250 - Risers

Hyve Group (HYVE) 23.25p 16.25%
William Hill (WMH) 104.80p 13.17%
TUI AG Reg Shs (DI) (TUI) 301.40p 9.60%
Bakkavor Group (BAKK) 74.50p 9.56%
PureTech Health (PRTC) 265.00p 9.05%
Ninety One (N91) 171.00p 8.64%
BMO Commercial Property Trust Limited (BCPT) 69.20p 8.13%
Sirius Real Estate Ltd. (SRE) 72.40p 8.06%
PayPoint (PAY) 595.00p 7.79%
Watches of Switzerland Group (WOSG) 228.50p 7.78%

FTSE 250 - Fallers

Premier Oil (PMO) 25.50p -4.42%
Wood Group (John) (WG.) 166.70p -2.69%
Aston Martin Lagonda Global Holdings (AML) 57.60p -2.29%
Energean Oil & Gas (ENOG) 638.00p -2.15%
Drax Group (DRX) 197.90p -1.93%
Hiscox Limited (DI) (HSX) 728.20p -1.89%
IP Group (IPO) 50.50p -1.56%
Plus500 Ltd (DI) (PLUS) 1,235.00p -1.52%
Vistry Group (VTY) 802.00p -1.35%
Hill & Smith Holdings (HILS) 1,112.00p -1.07%