London open: Stocks steady but Avast surges

London stocks were steady in early trade on Monday following a muted session in Asia.

At 0845 GMT, the FTSE 100 was flat at 7,345.77.

Richard Hunter, head of markets at Interactive Investor, said: "In early exchanges, UK indices saw a lacklustre open, with some weakness in cyclical stocks offset by a drift to defensives to render the indices flat.

"Any sustained weakness could, however, tempt institutional international investors back into the fray with the UK market having underperformed some of its global peers on a relative basis.

"Even so, the gains in the year to date have been rewarding, with the FTSE 100 up by 13.7% and the more domestically-focused FTSE250 by 15%."

Hunter said retail sales data and UK inflation figures will take centre stage this week as the earnings season finally winds down.

In equity markets, Avast was the standout gainer on the FTSE 100 after NortonLifeLock satisfied the US antitrust condition for its acquisition.

Government outsourcer Serco rallied as it lifted profits guidance after better-than-expected trading in Australia and the UK from Covid-related work.

CMC Markets surged after the online financial trading group confirmed it was looking at a possible separation of its leveraged and non-leveraged divisions in order to unlock shareholder value. The shares were also underpinned by an upgrade to ‘buy’ at Jefferies.

Cineworld racked up health gains after it said box office and concession revenues in October were at 90% of pre-Covid levels as "an excellent slate of films" drove a recovery.

Ascential was also higher after announcing the acquisition of WhyteSpyder, an e-commerce software and digital merchandising business which helps brands succeed on Walmart's digital marketplace, for an undisclosed sum. The company also said both editions of its Money20/20 event rebounded strongly this year.

On the downside, IAG was in the red after HSBC aviation analyst Andrew Lobbenberg suggested the British Airways and Iberia owner could tap shareholders for more cash early next year. According to the Mail on Sunday, Lobbenberg said a rights issue would be the fastest way for the aviation giant to tackle its €12.3bn debt and allow it to restart paying a dividend.

IT provider Kainos slumped even as it reported a jump in first-half profit and revenue amid "robust" market demand.

In broker note action, insurer Admiral was lifted by an upgrade to ‘buy’ at Berenberg, while Direct Line was knocked lower by a downgrade to ‘hold’ by the same outfit.

EasyJet flew lower after a downgrade to ‘reduce’ at Kepler Cheuvreux, while B&M European Value slid after a downgrade to ‘sell’ at Goldman Sachs. Auto Trader fell after a downgrade to ‘add’ at Peel Hunt.

Market Movers

FTSE 100 (UKX) 7,345.77 -0.03%
FTSE 250 (MCX) 23,599.19 0.18%
techMARK (TASX) 4,629.44 0.34%

FTSE 100 - Risers

Avast (AVST) 595.60p 6.59%
Darktrace (DARK) 593.50p 1.98%
Imperial Brands (IMB) 1,594.00p 1.95%
BT Group (BT.A) 170.30p 1.88%
Royal Dutch Shell 'A' (RDSA) 1,668.60p 1.67%
AstraZeneca (AZN) 8,937.00p 1.55%
Royal Dutch Shell 'B' (RDSB) 1,675.60p 1.12%
Johnson Matthey (JMAT) 2,297.00p 1.06%
Admiral Group (ADM) 2,954.00p 0.82%
Intermediate Capital Group (ICP) 2,371.00p 0.81%

FTSE 100 - Fallers

B&M European Value Retail S.A. (DI) (BME) 571.40p -4.67%
Evraz (EVR) 610.20p -1.58%
Ashtead Group (AHT) 6,352.00p -1.52%
Taylor Wimpey (TW.) 156.30p -1.51%
Persimmon (PSN) 2,686.00p -1.50%
Anglo American (AAL) 2,849.00p -1.45%
Antofagasta (ANTO) 1,466.50p -1.44%
St James's Place (STJ) 1,584.50p -1.40%
Glencore (GLEN) 362.80p -1.39%
BHP Group (BHP) 1,934.40p -1.35%

FTSE 250 - Risers

CMC Markets (CMCX) 294.00p 13.51%
Cineworld Group (CINE) 67.08p 6.68%
Ascential (ASCL) 432.40p 2.95%
Wood Group (John) (WG.) 196.50p 2.40%
Network International Holdings (NETW) 314.80p 2.08%
Trustpilot Group (TRST) 314.40p 1.95%
AO World (AO.) 131.60p 1.86%
Bridgepoint Group (Reg S) (BPT) 558.00p 1.82%
Airtel Africa (AAF) 137.10p 1.78%
Serco Group (SRP) 133.00p 1.68%

FTSE 250 - Fallers

Kainos Group (KNOS) 1,951.00p -4.92%
Discoverie Group (DSCV) 996.00p -2.35%
easyJet (EZJ) 585.80p -2.04%
Countryside Properties (CSP) 457.80p -1.76%
Games Workshop Group (GAW) 9,520.00p -1.45%
Grafton Group Ut (CDI) (GFTU) 1,252.00p -1.42%
Trainline (TRN) 294.80p -1.40%
Elementis (ELM) 136.20p -1.30%
HGCapital Trust (HGT) 420.00p -1.18%
Centamin (DI) (CEY) 103.25p -1.10%