London open: Stocks rally as investors eye construction data
London stocks racked up healthy gains in early trade on Tuesday, taking their cue from positive sessions in the US and Asia, as investors eyed the latest reading on the UK construction sector.
At 0830 GMT, the FTSE 100 was up 1.3% at 7,421.51.
Neil Wilson, chief market analyst at Markets.com, said: "China rallied overnight to pare back a little of Monday’s collapse as we saw a broad return to risk-on across Asia as fears of the coronavirus sweeping the region eased back a touch and investors hunted on the bargain shelf.
"Support from the PBOC is helping stabilise things, whilst there does not yet appear to be a serious escalation in the rate of new cases in China."
Wilson said tentative signs of a plateauing in new cases will be supportive of risk.
On the UK data front, Markit’s construction purchasing managers’ index for January is due at 0930 GMT, with analysts expecting a reading of 46.6, up from 44.4 in December.
In equity markets, NMC Health was the standout gainer after saying it knew of "no specific reason" for the more than 20% drop in its share price on Monday. The UAE-based private healthcare operator said the independent review being undertaken by former FBI director Louis Freeh and his risk management firm was "proceeding".
"The company's operations continue to perform strongly and the company expects to report full-year 2019 results in-line with management's expectations," it said.
The sharp decline in NMC shares on Monday coincided with weakness in shares of Travelex owner Finablr, which shares a chair and founder with NMC.
Ferguson advanced after the plumbing parts distributor said it was considering a primary or additional listing in the US and announced a $500m share buyback.
Oil giant BP followed close behind as it reported better-than-expected full-year results and lifted its dividend despite a weaker price environment that led to a sharp fall in profits.
Glencore was in the green even as it reported a 6% fall in copper production for 2019 after the miner and commodities trader shut down its mine in the Democratic Republic of Congo.
Science and engineering company Qinetiq pushed up as it said it continued to perform in line with its expectations in the third quarter and announced the acquisition of Newman & Spurr Consultancy for £14m.
On the downside, Micro Focus tumbled after it posted a decline in full-year profit and sales and announced the departure of its chairman following what it referred to as a "challenging" year.
Budget airline Wizz Air flew lower after its largest shareholder, private equity firm Indigo Partners, sold 12.45m shares in the company for £500m in an accelerated bookbuild.
Market Movers
FTSE 100 (UKX) 7,421.51 1.30%
FTSE 250 (MCX) 21,363.84 0.96%
techMARK (TASX) 4,166.83 0.39%
FTSE 100 - Risers
NMC Health (NMC) 1,126.00p 8.69%
Ferguson (FERG) 7,188.00p 4.17%
BP (BP.) 468.90p 3.58%
Evraz (EVR) 367.20p 3.06%
Glencore (GLEN) 227.75p 2.78%
Anglo American (AAL) 2,043.50p 2.56%
BHP Group (BHP) 1,698.20p 2.55%
Rio Tinto (RIO) 4,182.00p 2.41%
Scottish Mortgage Inv Trust (SMT) 611.50p 2.26%
Antofagasta (ANTO) 853.40p 2.23%
FTSE 100 - Fallers
Centrica (CNA) 85.22p -0.54%
Kingfisher (KGF) 204.90p -0.05%
Intertek Group (ITRK) 5,812.00p -0.03%
Just Eat (JE.) 861.00p 0.00%
WPP (WPP) 957.20p 0.19%
Associated British Foods (ABF) 2,633.00p 0.23%
Next (NXT) 6,998.00p 0.29%
Whitbread (WTB) 4,517.00p 0.33%
United Utilities Group (UU.) 1,008.50p 0.35%
Polymetal International (POLY) 1,261.50p 0.36%
FTSE 250 - Risers
PureTech Health (PRTC) 304.00p 6.67%
Vivo Energy (VVO) 111.00p 5.71%
Finablr (FIN) 79.70p 4.80%
Kaz Minerals (KAZ) 457.50p 3.51%
Morgan Advanced Materials (MGAM) 317.80p 3.11%
Tullow Oil (TLW) 50.52p 3.10%
Templeton Emerging Markets Inv Trust (TEM) 831.00p 3.10%
Contour Global (GLO) 192.80p 3.10%
Redrow (RDW) 835.00p 3.09%
Electrocomponents (ECM) 691.80p 3.07%
FTSE 250 - Fallers
Micro Focus International (MCRO) 883.50p -10.44%
Royal Mail (RMG) 190.75p -1.85%
Ultra Electronics Holdings (ULE) 2,196.00p -1.79%
Ferrexpo (FXPO) 134.55p -1.79%
Rank Group (RNK) 279.50p -1.58%
Wizz Air Holdings (WIZZ) 4,101.00p -1.42%
Hill & Smith Holdings (HILS) 1,395.00p -1.27%
Senior (SNR) 165.70p -1.07%
John Laing Group (JLG) 348.60p -1.02%
IP Group (IPO) 67.10p -0.45%