(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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easyJet, up 25%, International Consolidated Airlines, up 14%. The airlines were higher amid signs of a slowdown in the spread of the coronavirus and as some governments begin making plans to ease restrictions aimed at containing the outbreak. "A recession still remains a given; but hopes are rising that it could well be manageable and not turn into a depression, and that is boosting airlines and travel shares this morning, a sector that has so far borne the brunt of the huge sell-off since February 21. Easyjet and British Airways owner International Consolidated Airlines are leading the gainers in the airline sector, while hotels are rallying too," said CMC Markets analyst Michael Hewson.
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Carnival, up 24%. The embattled cruise ship operator said it has raised USD2.53 billion in total through its previously announced share issue and note offering. The company raised USD575 million through the issue of 71.9 million shares at USD8 per share. On Thursday last week, Carnival had downsized its share placing to 62.5 million shares, after originally saying it would offer USD1.25 billion worth of stock. The final total of 71.9 million shares issued includes 9.4 million shares taken by underwriters in a full exercise of their option to purchase additional shares. Amid the fundraise, Saudi Arabia's Public Investment Fund has taken a sizeable stake in Carnival, a US regulatory filing showed on Monday. The Public Investment Fund - the sovereign wealth fund of Saudi Arabia - now holds a 8.2% stake in cruise operator Carnival, or 43.5 million shares. The company separately said Tuesday it raised USD1.95 billion via issue of 5.75% convertible senior notes due 2023.
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FTSE 250 - WINNERS
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Cineworld Group, up 25%, The cinema chain has suspended scheduled and upcoming dividend payouts in an effort to conserve cash during the Covid-19 lockdowns. The movie theatre operator said it will not pay either the 2019 fourth-quarter dividend of 4.25 cents or any quarterly dividends for 2020. It is restricting capital expenditure to preserve cash and also is in spending discussions with its landlords, film studios and major suppliers. Executive directors have agreed to defer full payment of salaries and bonuses, the company said, adding that the fees of non-executive directors have also been deferred. All of Cineworld's 787 cinemas across 10 countries are closed as a result of Covid-19. Cineworld added it is discussing ongoing liquidity requirements with its revolving credit facility banks. "It is worth noting that predictions for the death of cinema have been made before, notably in the 1950s and 1980s when the advent of TV and home video respectively led to declines in admissions, but the industry ultimately recovered. Cineworld and its investors will hoping for a repeat this time," said AJ Bell' Russ Mould.
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Travis Perkins, up 17%. Exane BNP raised the builders' merchant to Outperform from Neutral.
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FTSE 250 - LOSERS
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Assura, down 7.7% at 77.10 pence. The healthcare property investor said it has raised GBP185 million through the placing of 240.2 million shares at 77 pence each. The placing price represents a discount of 7.8% to its closing price of 83.5p on Monday. On Monday, Assura said it intended to raise around GBP180 million through a placing in order to fund its development and acquisitions pipeline worth GBP165 million. Within the GBP165 million pipeline, GBP85 million are on-site development opportunities due to be completed by December, GBP67 million are acquisition opportunities consisting of individual properties, all due to be completed within the next three-to-six months. The final GBP17 million are asset enhancement capital projects aimed at growing rental income.
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OTHER MAIN MARKET AND AIM - WINNERS
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Halfords Group, up 18%. Peel Hunt raised the car parts and bicycle retailer to Buy from Hold.
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Restaurant Group, up 7.1%. The restaurant chain owner was upgraded to Buy from Hold by HSBC.
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By Arvind Bhunjun; arvindbhunjun@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
International Airlines (IAG)
Assura (AGR)
Carnival (CCL)
Halfords (HFD)
Travis Perkins (TPK)
easyJet (EZJ)