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* Fashion retailer Next jumps on robust earnings
* Royal Mail drops to bottom of FTSE 100
* Survey shows UK recovery loses some pace
* FTSE 100 up 1.7%, FTSE 250 adds 1.9%
(Updates to close)
By Shashank Nayar and Amal S
July 21 (Reuters) - Travel-related stocks and retailers
helped London's FTSE 100 to record its strongest session in more
than five months on Wednesday, while Next Plc was the top gainer
after it raised its profit outlook following robust earnings.
The blue-chip index ended 1.7% higher, with Compass
Group, International Consolidated Airlines,
Whitbread, and Rolls-Royce among the top gainers.
The domestically focussed mid-cap index rose 1.9%,
marking its best day since January 2020. The index was boosted
by a 4.4% gain in travel sub-index with Cineworld
, Carnival, SSP Group, and EasyJet
gaining between 4.3% and 7.5%.
Shares of the British fashion retailer surged 7.5%
after it said it had soundly beaten its expectations for
full-price sales and, as a result, was increasing its profit
forecast.
"We've seen the panic hit the market and then now we're are
back to normal. Given the uncertainties around the economic
recovery for the rest of the year, it pretty much assures the
investors that central banks will remain cautious, cementing the
hope that interest rate lifts are not going to happen next
year," said Edward Moya, senior market analyst at OANDA.
The FTSE 100 has risen 8.3% so far this year, supported by
cheap borrowing costs and optimism around economic re-opening,
although a recent jump in COVID-19 cases, higher inflation
levels and hawkish tone from central banks on tapering of
interest rates have capped those gains.
A survey showed UK's economic bounce-back from lockdowns
cooled in June despite a surge in business for the country's
hospitality sector, echoing signs that the recovery has lost
some of its pace.
Among other stocks, media group Future jumped 9.2%
and was among the top boost to the mid-cap index after it said
it expects its full-year profitability to be ahead of
expectations.
Royal Mail Plc dropped 2.7% to the bottom of the
FTSE 100 after it said fewer parcels were being delivered to
homes as pandemic restrictions eased across the country, even as
it reported a 12.5% rise in first-quarter group revenue.
Private equity firm Bridgepoint up 29.1%, saw its
value rise by more than a fifth on its London stock market
debut.
(Reporting by Shashank Nayar and Amal S in Bengaluru; Editing
by Shailesh Kuber, Uttaresh.V and David Evans)
