UK WINNERS & LOSERS SUMMARY: Aston Martin Soars On New CEO Appointment

Tue, 26th May 2020 11:06

(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Tuesday.

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FTSE 100 - WINNERS

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International Consolidated Airlines, up 20%, easyJet up 19%. The airline operators were higher amid optimism in the aviation sector. Foreign visitors to Spain will no longer have to undergo a two-week quarantine from July 1, the Spanish government has announced on Monday. IAG owns Spain's Iberia and Vueling airlines. In addition, the German government and carrier Deutsche Lufthansa have agreed on a much-anticipated EUR9 billion bailout deal to help the airline cope with losses from the coronavirus pandemic, both sides announced on Monday. FTSE 250-listed Anglo-German travel operator TUI was up 33% and Irish carrier Ryanair Holdings was up 9.8%. "Strength in this sector underscores confidence among investors that economies are reopening, and consumers are keen to travel. There is a lot more hope that travel restrictions across Europe will be eased in time for the summer holidays. If the summer holiday season can be saved it would be a big plus after most of us wrote it off," said Markets.com analyst Neil Wilson.

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FTSE 100 - LOSERS

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Fresnillo, down 2.4%, Polymetal International, down 1.4%. The gold miners were tracking spot gold prices lower quoted at USD1,725.01 an ounce, down from USD1,733.00 late Friday.

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FTSE 250 - WINNERS

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Aston Martin Lagonda, up 35% at 49.00 pence. The luxury carmaker confirmed Chief Executive Officer Andy Palmer has stepped down with immediate effect, and it has appointed Mercedes executive Tobias Moers as his replacement. Palmer's position as chief executive has been the subject of speculation since billionaire Lawrence Stroll led a consortium that bought a 25% stake in Aston Martin last month, and then sold part of that to another consortium led by Mercedes-AMG Formula 1 team principal Toto Wolff. Tuesday's announcement confirmed a report in the Financial Times newspaper on Sunday. Moers will be based at Aston Martin's headquarters in Gaydon, Warwickshire and will join the company on August 1. He is currently CEO of the AMG sports car arm of Mercedes Benz AG, itself part of 4% Aston Martin shareholder Daimler AG. Moers has held that position since 2013. However, the stock remains 97% lower from its October 2018 initial public offering price of 1,900p.

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Stagecoach, up 15%. The transport company's shares were higher after the UK Department for Transport made GBP283 million available for the phased increased of bus, tram and light rail services in England. The UK government is looking at a phased increase in transport services in England, after normal bus, tram and light rail networks across the UK were mostly paused in March as part of the effort to stop the spread of Covid-19. As part of this, the Department for Transport has made GBP254 million available for buses and GBP29 million for trams and light rail to help increase the frequency and capacity of services. Perth, Scotland-based Stagecoach said: "Discussions will continue between the government and industry representatives regarding future arrangements, and we will assess the full detail of the government's plans as these are confirmed."

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FTSE 250 - LOSERS

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Softcat, down 4.8%. The IT infrastructure and services provider said trading in the quarter ended April 30 has been "satisfactory". In a brief trading update, Softcat said it saw growth in revenue, gross profit and operating profit in its third quarter. Cash receipts from customers have remained broadly in line with normal trends, Softcat added. The firm continued: "There remains a high degree of uncertainty in the coming months and Softcat is not immune to the challenges faced by the wider economy. However, we have moved seamlessly to a remote working model and the board is encouraged by the resilience of the business thus far."

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OTHER MAIN MARKET AND AIM - WINNERS

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Foxtons Group, up 3.1%. The estate agent said while it has continued to operate over the phone and online during the lockdown in the UK, business has dropped compared to a year ago. Foxtons said for the eight weeks between March 23 to May 15, total commissions earned were down by 44% year-on-year with letting commissions falling by 40%, and sales commissions by 61%. Mortgage broking revenue was down 2%. Foxtons said it plans to begin re-opening its branches by Friday, adding that it expects all branches to be open by June 1. Furloughed employees will be brought back to work on the same date and safety measures - such as social distancing procedures, enhanced office cleans, and mandatory Covid-19 training - will be implemented. Looking ahead, Foxtons said that while its outlook remains uncertain in relation to annual results and trading performance, it is "pleased" with the resilience of the business during the Covid-19 disruption.

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By Arvind Bhunjun; arvindbhunjun@alliancenews.com