FTSE 100 movers: Entain surges; JD Sports hit by downgrade
London’s FTSE 100 was up 2.7% at 6,634.79 in afternoon trade on Monday , kicking off the new year with a bang amid optimism over the Covid-19 vaccine rollout.
Entain surged after the Labdrokes owner rejected a proposed offer from its US partner MGM Resorts International valuing it at about £8.1bn. Entain said it had told MGMRI the proposal "significantly undervalues" the company. It has also asked for more information about the strategic rationale for combining the companies.
Russ Mould, investment director at AJ Bell, said: "While Entain has rebuffed the offer as undervaluing the company and questioned the case for a tie-up, like William Hill its bargaining position is somewhat compromised by the fact it is negotiating with a partner.
"Shareholders may be persuaded to hold firm by the fact the offer includes only a limited cash element."
Precious metals miners were on the rise as gold prices shone, with Fresnillo and Polymetal both higher.
Miners also advanced in tandem with metals prices, with Glencore, Anglo, BHP and Rio all up.
On the downside, JD Sports was knocked lower by a rating downgrade at Exane.
Elsewhere, Rolls-Royce fell after the Financial Times reported that the engine maker will be putting its UltraFan engine programme "on ice" when testing finishes in 2022.
Banks and housebuilders were also in the red.
FTSE 100 - Risers
Entain (ENT) 1,463.50p 29.11%
Fresnillo (FRES) 1,241.00p 9.87%
Polymetal International (POLY) 1,814.50p 7.72%
Glencore (GLEN) 249.00p 6.87%
Anglo American (AAL) 2,574.50p 6.19%
BHP Group (BHP) 2,041.00p 6.03%
Rio Tinto (RIO) 5,763.00p 5.36%
Evraz (EVR) 496.60p 5.30%
Smith & Nephew (SN.) 1,584.00p 4.90%
CRH (CRH) 3,202.00p 4.71%
FTSE 100 - Fallers
NATWEST GROUP PLC ORD 100P (NWG) 161.10p -3.91%
JD Sports Fashion (JD.) 830.00p -3.49%
Rolls-Royce Holdings (RR.) 107.75p -3.15%
Taylor Wimpey (TW.) 162.00p -2.29%
Lloyds Banking Group (LLOY) 35.75p -1.88%
Barratt Developments (BDEV) 662.20p -1.16%
British Land Company (BLND) 486.90p -0.43%
Hargreaves Lansdown (HL.) 1,519.00p -0.39%
Avast (AVST) 536.50p -0.19%
Barclays (BARC) 146.68p 0.00%