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UPDATE 2-FTSE 100 recovers 1% on energy, healthcare stock boost; Entain jumps

Tue, 21st Sep 2021 09:14

(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)

* Kingfisher top FTSE 100 loser despite positive results

* Royal Dutch Shell sells U.S. oilfield assets

* Stagecoast surges on merger talks with rival

* FTSE 100 up 1.0%, FTSE 250 adds 0.8%
(Updates to close)

By Shashank Nayar

Sept 21 (Reuters) - London's FTSE 100 rebounded on Tuesday,
aided by gains in energy and healthcare stocks, and Entain
jumped to the top of the index after the Ladbrokes owner said it
received an offer from DraftKings.

The blue-chip FTSE 100 ended 1.0% higher and
recorded its best session in two months. Oil major BP and
Royal Dutch Shell were among the top boosts.

Entain jumped 18.0%, leading gains on travel and
leisure stocks, after it confirmed that U.S.
fantasy sports betting company DraftKings has made an
offer to buy the British gambling firm in a deal that one media
report said could be valued at $20 billion.

The FTSE 100 has gained 8% so far this year on support from
dovish central bank policies and re-opening optimism. However,
higher inflation pressures have raised scepticism among
investors that central banks might hint later this week towards
pulling back massive asset purchases sooner than expected.

"Investors are still progressing ahead with fingers crossed
as the Fed and the BoE are unlikely to declare any tapering
measures this time, as it would potentially unsettle the global
equity environment before the third-quarter earnings season,"
said Kunal Sawhney, chief executive at Kalkine.

Healthcare stocks gained 1.5% with drugmakers
including AstraZeneca, Indivior, Oxford
BioMedica up between 1.6% and 4.8%.

The domestically focussed mid-cap index rose 0.8%,
with travel stocks being among the top gainers.

In earnings-driven moves, Kingfisher fell 4.9% to
the bottom of the FTSE 100 even as the British home improvement
retailer reported a jump in first-half profit.

Royal Dutch Shell jumped 3.6% after it said it would sell
its Permian Basin assets to ConocoPhillips for $9.5
billion in cash, exiting the largest U.S. oilfield.

British transport company Stagecoach Group surged
27.0% to the top of mid-cap index, after it said it was in talks
with rival operator National Express about a possible
all-share merger. National Express was up 7.6%.

Semiconductor technology company Alphawave jumped
19.4% on raising its 2021 guidance after reporting a 140% rise
in first-half revenue.
(Reporting by Shashank Nayar and Amal S in Bengaluru; Editing
by Saumyadeb Chakrabarty, Subhranshu Sahu and Marguerita Choy)

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