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* IAG gains on optimism around reopening of transatlantic
travel
* Pound extends losses after BoE leaves rates unchanged
* FTSE 100 up 0.3%, FTSE 250 adds 0.4%
(Updates to close)
By Bansari Mayur Kamdar
Nov 5 (Reuters) - London's FTSE 100 ended higher on Friday,
led by banks and energy stocks, while British Airways parent IAG
jumped on recovery hopes despite warning of a big loss in 2021.
The blue-chip FTSE 100 gained 0.3% to record its
highest close since February 2020, with oil majors BP and
Royal Dutch Shell up 1.7% and 1.5%, as crude prices
extended gains for the second session.
The pound extended its decline, down 0.1%, having
recorded its worst day in over a year on Thursday, further
boosting the export-heavy FTSE 100 index and dollar earner
companies like British American Tobacco, Unilever
and Diageo.
"Consumer stocks have taken the cue from the MPC's
assessment the economy is on a positive trajectory," said Kunal
Sawhney, CEO of Kalkine Media.
"Despite the GDP forecast being revised downward by a
percentage point, the demand is likely to sustain, which will
help the consumer stocks to continue the momentum gained
recently," he added.
The banking sector rose 1.1%, rebounding
from its worst session in over a month in the prior session,
despite the UK's 10-year government bond yields recording a
one-month low after a surprise decision by the Bank of England
on Thursday to hold off on raising interest rates.
The FTSE 100 rose 1% this week, underperforming the 2%
increase in the UK's mid-cap index and a 1.8% weekly
gain in the wider European stock aggregate, bogged down
by volatile commodity prices and heavy losses in the banking
sector on Thursday following the BoE's rate decision.
The domestically focussed FTSE 250 index was up
0.4%, closing at a month high aided by consumer discretionary
stocks.
IAG gained 6.1% after the British Airways owner
said its is "very optimistic" about the reopening of
transatlantic travel and planning to ramp up capacity on those
routes next year, after reporting big loss in 2021.
Other British travel stocks like Wizz Air and
Easyjet, gained 2.8% and 6% respectively.
Britain's THG gained 3.9% after investment
management company Blackrock disclosed its 5.37% stake in the
online consumer brands company on Thursday.
(Reporting by Bansari Mayur Kamdar and Amal S in Bengaluru;
Editing by Subhranshu Sahu, Krishna Chandra Eluri and Giles
Elgood)
