LONDON MARKET OPEN: Higher start against quiet backdrop in Europe

(Alliance News) - A positive start to the week in Asia led onto a green open in London on Monday, though trade was muted with some key European bourses, including Frankfurt, shut for holiday.

The FTSE 100 index was up 12.36 points, or 0.2%, at 7,030.41 early Monday. The mid-cap FTSE 250 index was marginally lower, down just 2.84 points at 22,396.58. The AIM All-Share index was down 0.1% at 1,248.62.

The Cboe UK 100 index was up 0.2% at 701.08. The Cboe 250 was flat at 20,142.72, and the Cboe Small Companies up 0.1% at 14,878.92.

"Risk sentiment was steady at the start of the new week, with most major Asian equity indices trading higher, albeit modestly," said Lloyds Bank.

The Japanese Nikkei 225 index closed up 0.2% on Monday. In China, the Shanghai Composite ended up 0.3%, while the Hang Seng index in Hong Kong was down 0.2% in late trade. The S&P/ASX 200 in Sydney ended up 0.2%.

The start of trade was subdued in London on Monday with some European markets, such as in Germany and Switzerland, closed. Paris was open, however, and the CAC 40 was up 0.1% in opening dealings.

On the London Stock Exchange, Kainos shares rallied 3.9% as it reported a sharp jump in full-year revenue and hiked its dividend.

Revenue for the financial year ended March 31 rose 31% to GBP234.7 million from GBP178.8 million, Kainos said. Digital Services revenue grew 32% and Workday Practice revenue grew by 30%.

"We have delivered a very strong business performance, reflecting strong sector demand, the ongoing trust and support of our customers and the dedication of our people," said Kainos.

Bookings rose 6%, and Kainos reported contracted backlog growth of 15%. It had period-end net cash of GBP80.9 million, nearly double the GBP40.8 million a year ago.

Pretax profit for the year more than doubled to GBP50.3 million from GBP23.2 million.

Kainos hiked its total dividend to 28.2 pence from just 3.5p in the 2020 financial year.

"The pandemic has demonstrated that our sector is resilient, but it has also demonstrated that the future is unpredictable. Notwithstanding our confidence, challenges remain. Countries and customers are exiting lockdown at different speeds and with varying degrees of success. The effects of the pandemic will linger for many years and we need to remain vigilant," the company said.

Cineworld rose 2.1% on a "strong" opening weekend in the UK.

"This weekend's performance went beyond our expectations as customers were eager to return to the movies and enjoy the full movie experience, including the traditional popcorn which led to strong concession income," the cinema operator said.

While outdoor hospitality was able to re-open in England on April 12, indoor entertainment, such as cinemas and museums, were only able to resume business on Monday last week.

In the US, 97% of cinemas have resumed operations, Cineworld said. In its Rest of World region, Poland and Israel will be opening at the end of the coming week and most will be open by the end of May, Cineworld said.

"With the releases next week of 'Cruella', and 'A Quiet Place 2', we expect next weekend's results to be strong. When combined with improving consumer confidence and the success of the vaccination rollout, we expect a good recovery in attendance over the coming months," said Chief Executive Mooky Greidinger.

On AIM, two new market entrants debuted to a mixed reception. Shares in digital advertising services firm Dianomi were trading at 290p early Monday, above the IPO price of 273p, while shares in Kitwave, which delivers frozen and chilled food, eased to 145p from its 150p IPO price.

Sterling was quoted at USD1.4166 early Monday, marginally lower than USD1.4169 at the London equities close on Friday.

In some positive news on the vaccine front, a study by Public Health England has found the Pfizer Covid-19 jab is 88% effective against the Indian variant after two doses.

Both the Pfizer and AstraZeneca jabs were found to be almost as effective against symptomatic disease from the B1617.2 strain as they are against the Kent variant after the second dose. However, they were only 33% effective three weeks after the first dose.

UK Health Secretary Matt Hancock described the outcome as "groundbreaking", while PHE said it expects to see even higher levels of effectiveness against hospital admission and death.

The possibility of all coronavirus restrictions being lifted next month is "looking good", the chief executive of the UK Health Security Agency said.

The euro traded at USD1.2198 early Monday, firm against USD1.2186 late Friday. Against the yen, the dollar fell to JPY108.73 versus JPY108.94.

Japan opened its first mass vaccination centres in a bid to speed up a cautious Covid-19 inoculation programme with just two months until the virus-postponed Tokyo Olympics.

Gold was quoted at USD1,882.76 an ounce early Monday, higher than USD1,875.10 on Friday. Brent oil was trading at USD67.15 a barrel, up from USD66.64 late Friday.

By Lucy Heming; lucyheming@alliancenews.com

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