London midday: Stocks rise amid Covid treatment hopes

(Sharecast News) - London stocks were firmly in the black by midday on Monday, with sentiment boosted by fresh hopes of a coronavirus treatment.
The FTSE 100 was up 1.9% at 6,116.32.

Spreadex analyst Connor Campbell said: "If last week was beset by the economic realities of the Covid-19 pandemic, then Monday is starting out with a (temporary) cure for those concerns -namely, the approval of blood plasma from recovered patients as a treatment against the virus.

"The FDA have granted 'emergency use authorisation' to this method, based on evidence it can reduce the mortality rate of covid-19 patients while aiding their recovery.

"Donald Trump was in danger of undermining sentiment as he once again labelled Covid-19 as the 'China virus' during the announcement. However, the markets were willing to look beyond the President's geopolitical needling to focus on celebrating this moment of progress."

The mood was also lifted by a report suggesting that Trump is considering seeking another FDA 'emergency-use authorisation' for the coronavirus vaccine being developed by AstraZeneca and Oxford University. AstraZeneca shares traded up 3.6% on the news.

Elsewhere , BT rallied following a report over the weekend that the company has asked bankers at Goldman Sachs to update its bid defence strategy following a collapse in the share price. According to Sky News, BT is preparing to defend itself against takeover approaches from industry rivals and buyout firms after the suspension of its dividend sent the shares tumbling to their lowest level in more than a decade.

Neil Wilson, chief market analyst at Markets.com, said: "At a valuation of £10bn, the group has become a definite target. And whilst BT has a lot of legacy baggage - notably £18bn in net debt and a major pension deficit - it's also got the Openreach crown jewel, which would be worse considerably more on its own than the group is valued today.

"Of course, there is no formal offer, but shares could jump further if one emerges. Deutsche Telekom, which owns 12% in BT, is seen as a likely candidate. The question is whether there could be more bombed out UK-listed stocks that could be taken out by a timely takeover...perennial rumour-favourite ITV, for instance?"

Distribution and services group Bunzl rose after posting a rise in first-half profit, reinstating its dividend and announcing the acquisition of a US-based safety business and a flexible packaging distributor in Ireland.

Aerospace and defence engineer Meggitt gained after signing a multi-million pound contract with Japan's MODEC - a specialist of floating production systems for the offshore oil and gas industry - for the supply of pioneering printed circuit heat exchanges.

Cineworld was higher as Peel Hunt said the stock presents "an attractive buying opportunity" for investors with appetite for material risk. The broker, which rates Cineworld at 'buy' with a 180p price target, said the shares should "bounce hard" once investors are reassured over demand.

Market Movers

FTSE 100 (UKX) 6,116.32 1.91%
FTSE 250 (MCX) 17,714.33 0.78%
techMARK (TASX) 3,851.69 2.14%

FTSE 100 - Risers

BT Group (BT.A) 107.40p 5.50%
Anglo American (AAL) 1,927.60p 3.76%
AstraZeneca (AZN) 8,743.00p 3.63%
Royal Dutch Shell 'A' (RDSA) 1,154.80p 3.50%
M&G (MNG) 173.60p 3.33%
Bunzl (BNZL) 2,484.00p 3.28%
Royal Dutch Shell 'B' (RDSB) 1,109.20p 3.16%
Imperial Brands (IMB) 1,292.00p 3.11%
Smurfit Kappa Group (SKG) 2,764.00p 3.06%
BP (BP.) 281.25p 2.89%

FTSE 100 - Fallers

GVC Holdings (GVC) 775.40p -1.37%
Whitbread (WTB) 2,369.00p -1.21%
InterContinental Hotels Group (IHG) 4,234.00p -1.07%
Compass Group (CPG) 1,156.50p -0.60%
Land Securities Group (LAND) 567.70p -0.54%
International Consolidated Airlines Group SA (CDI) (IAG) 192.30p -0.47%
Coca-Cola HBC AG (CDI) (CCH) 2,010.00p -0.40%
British Land Company (BLND) 359.80p -0.22%
Homeserve (HSV) 1,335.00p -0.15%
SEGRO (SGRO) 969.00p 0.12%

FTSE 250 - Risers

Oxford Instruments (OXIG) 1,566.00p 6.24%
Network International Holdings (NETW) 412.40p 6.23%
Cineworld Group (CINE) 54.06p 5.71%
Pets at Home Group (PETS) 295.80p 4.89%
Avon Rubber (AVON) 3,745.00p 4.32%
RHI Magnesita N.V. (DI) (RHIM) 2,768.00p 4.30%
Aggreko (AGK) 473.00p 3.68%
Cairn Energy (CNE) 135.80p 3.66%
IP Group (IPO) 74.30p 3.34%
Micro Focus International (MCRO) 306.00p 3.27%

FTSE 250 - Fallers

Calisen (CLSN) 168.50p -5.42%
John Laing Group (JLG) 282.60p -3.68%
Shaftesbury (SHB) 506.50p -3.43%
CLS Holdings (CLI) 192.00p -3.03%
Equiniti Group (EQN) 109.20p -3.02%
FirstGroup (FGP) 39.12p -2.35%
Apax Global Alpha Limited (APAX) 157.80p -1.87%
Hammerson (HMSO) 49.07p -1.86%
Royal Mail (RMG) 185.60p -1.75%
Workspace Group (WKP) 578.00p -1.70%