London open: Stocks rise as Standard Life, Vodafone rally

London stocks rose in early trade on Tuesday, shaking off opening losses and helped along by a strong showing from the likes of Standard Life and Vodafone.

At 0850 BST, the FTSE 100 was up 0.6% at 5,975.23.

Neil Wilson, chief market analyst at Markets.com, said: "Stock markets are in a bit of a muddle right now. On the one hand there are signs of economies emerging from stasis. New York governor Cuomo says three regions of the state will reopen this weekend. Britain has moved from ‘stay home’ to ‘stay alert’, Europe is reopening: there is light at the end of the tunnel, and markets are always first to move. Massive stimulus from central banks and governments helps, too.

"But on the other hand, stimulus government stimulus can’t go on forever. Businesses will need to get back to a new normal of reduced earnings in the main."

Wilson said signs of second-wave outbreaks across South Korea, China and even Germany stoke fears among investors that economies will, if not shut down again at scale, look very different to before as countries take sustainable steps to reopen.

In equity markets, Standard Life Aberdeen was in the black as it said estimated assets under management and administration as at 30 April stood at £490bn, with estimated net outflows in the first four months of the year of around £24bn.

Mobile phone network operator Vodafone rallied after it confirmed its dividend but pulled guidance for 2021 due to coronavirus uncertainties as full year core earnings rose 2.6% to €14.9bn.

Morrisons gained after keeping its dividend options on hold as the supermarket group reported an increase in like-for-like sales for the first quarter fuelled by the Covid-19 crisis.

B&Q and Screwfix owner Kingfisher surged after it posted a 24% decline in first-quarter sales as it took a hit from the coronavirus lockdown but said sales improved at the start of May as stores reopened.

Marks & Spencer was boosted by an upgrade to ‘overweight’ at Morgan Stanley.

On the downside, property developer Land Securities slid after pulling its final dividend as full-year losses widened and asset values fell.

Retirement homebuilder McCarthy & Stone was weaker as it announced that Rowan Baker will step down as chief financial officer to become CFO of Laing O'Rourk.

Market Movers

FTSE 100 (UKX) 5,975.23 0.60%
FTSE 250 (MCX) 16,295.97 0.15%
techMARK (TASX) 3,676.29 1.45%

FTSE 100 - Risers

Standard Life Aberdeen (SLA) 223.10p 3.91%
Vodafone Group (VOD) 117.14p 3.66%
Smith & Nephew (SN.) 1,648.50p 2.61%
BAE Systems (BA.) 515.80p 2.54%
SSE (SSE) 1,273.00p 2.54%
Meggitt (MGGT) 250.50p 2.04%
3i Group (III) 749.60p 1.93%
Aviva (AV.) 246.80p 1.90%
Sage Group (SGE) 654.60p 1.87%
Associated British Foods (ABF) 1,756.50p 1.83%

FTSE 100 - Fallers

Land Securities Group (LAND) 591.00p -6.55%
International Consolidated Airlines Group SA (CDI) (IAG) 179.15p -3.14%
British Land Company (BLND) 372.60p -2.84%
Polymetal International (POLY) 1,612.50p -2.74%
Carnival (CCL) 934.80p -2.36%
Whitbread (WTB) 2,786.00p -1.83%
JD Sports Fashion (JD.) 531.20p -1.48%
Compass Group (CPG) 1,252.00p -1.42%
Rolls-Royce Holdings (RR.) 279.40p -1.13%
Royal Dutch Shell 'B' (RDSB) 1,248.20p -1.09%

FTSE 250 - Risers

Kingfisher (KGF) 173.05p 6.53%
OneSavings Bank (OSB) 258.40p 5.30%
Micro Focus International (MCRO) 470.50p 5.26%
4Imprint Group (FOUR) 1,996.00p 5.05%
Ninety One (N91) 188.40p 4.09%
Pets at Home Group (PETS) 261.00p 3.16%
Man Group (EMG) 137.05p 3.05%
Marks & Spencer Group (MKS) 90.18p 2.99%
IP Group (IPO) 55.20p 2.99%
Hill & Smith Holdings (HILS) 1,146.00p 2.87%

FTSE 250 - Fallers

Bakkavor Group (BAKK) 72.80p -9.00%
Aston Martin Lagonda Global Holdings (AML) 40.02p -7.15%
Helios Towers (HTWS) 123.40p -6.23%
Convatec Group (CTEC) 208.40p -4.93%
Hiscox Limited (DI) (HSX) 746.60p -4.72%
SSP Group (SSPG) 226.60p -3.49%
Cineworld Group (CINE) 60.98p -3.48%
Hammerson (HMSO) 50.34p -3.45%
Go-Ahead Group (GOG) 1,192.00p -3.17%
Hilton Food Group (HFG) 1,186.00p -2.95%