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* FTSE 100 up 0.5%, FTSE 250 down 0.2%
* Defensive drugmakers, consumer staples help blue-chip FTSE
* Shell, BP slide as U.S. crude futures plunge
* Profits for STOXX 600 companies seen down 22% in Q1
(Updates with market closing)
By Devik Jain and Sruthi Shankar
April 20 (Reuters) - Britain's FTSE 100 stock index ended a
volatile session slightly higher on Monday, helped by consumer
staple giants and drugmakers, but a collapse in oil prices and
nerves about the corporate earnings season kept a lid on the
gains.
The blue-chip index rose 0.5%, boosted by a 4% jump
in Unilever Plc and Reckit Benckiser, and a 2%
rise in AstraZeneca.
However, Royal Dutch Shell and BP fell 2%
and 0.4%, respectively, as the U.S. crude futures contract
plunged more than 50% on worries about lack of storage and a
weakening global economy.
The FTSE 250 midcap index, guided more by the
outlook for the domestic economy, slipped 0.2% as UK officials
said it was too soon to talk about easing the lockdown imposed
to control the spread of the coronavirus.
After a late rally last week on signs of gradual restarting
of economies, stock markets globally pulled back on Monday as
investors braced for dismal earnings reports and economic data.
"Now we've got people asking companies questions that have
never been asked - how many weeks or months of liquidity do you
have looking at your current cash flow and revenue if the
lockdown lasted longer," said Benji Dawes, who co-manages the UK
Growth Fund at Premier Miton.
"That's why we're starting to see companies raising equity.
It is a function of these companies trying to make sure there is
as much liquidity as possible in case of a longer lockdown."
Sofa retailer DFS Furniture surged 11% after
revealing plans to issue equity of up to 19.9% of its existing
share capital and negotiate an additional debt facility to get
it through the crisis.
Mr Kipling cakes maker Premier Foods soared 29%
after it forecast annual trading profit to be at the top end of
market expectations as Britons stocked up on food at the start
of the lockdown.
Investors are expecting the health crisis to erode
first-quarter profit for companies listed on the pan-European
STOXX 600 index by 22%, according to Refinitiv data.
Analysts at J.P.Morgan Cazenove said in a client note that
hopes that markets will focus on better earnings in 2021, rather
than weak numbers this year, might be dented.
"Equities are much less forward-looking than commonly
assumed, their prices tended to be almost coincident with
activity and earnings movement," they said.
Despite recovering from mid-March lows due to massive
stimulus measures by major central banks and governments, the
FTSE 100 remains down more than 24% from its January peak.
Property website Rightmove said it was unable to provide
meaningful house price data due to a collapse in the number of
new homes being listed for sale in Britain.
Shares in housebuilders Barratt Development, Taylor
Wimpey and Persimmon were down 2% to 5%.
Pub operator Marston's fell 3.8% as it secured a
waiver from its banking backers for potential breaches of its
debt commitments, highlighting the extent of damage wrought on
UK pubs and restaurants.
(Reporting by Devik Jain and Sruthi Shankar in Bengaluru;
Editing by Sriraj Kalluvila and Saumyadeb Chakrabarty)
