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Market Wrap - Midday

FTSE rises as miners, housebuilders and airlines gain momentum

02 October 2017 11:59

It was a strong start to the week for the FTSE 100 thanks to gains in miners, housebuilders and airline stocks.

The blue-chip index was trading 0.5% higher at 7,412 around midday.

Brent crude oil slid 1.5% to $56 per barrel. Gold cheapened 0.7% to $1,272 per ounce and copper climbed 0.6% to $2.95 per pound.

MONARCH TROUBLES SET TO HELP RIVALS

Airlines were flying higher following the downfall of Monarch, which entered administration as higher costs, terrorism attacks and intense competition took its toll.

British Airways operator International Consolidated Airlines (IAG) rose 1.8% to 604p. Budget airlines easyJet (EZH) and Ryanair (RYA) gained 4.2% to £12.68 and 2.7% to €16.71 despite mass cancellations from the latter over the last few weeks.

Among the miners, Anglo American (AAL) and Glencore (AAL) gained 2.1% and 1.8%.

HELP TO BUY NEWS BOOSTS HOUSEBUILDERS

News over the weekend that the Help to Buy scheme would be extended by £10bn strengthened housebuilders, with Barratt Developments (BDEV) receiving the biggest boost, up 3.6%.

Persimmon (PSN) and Taylor Wimpey (TW.) chased the stock higher, jumping 3.6% and 1.9%, respectively.

MID AND LARGE CAPS RISERS AND FALLERS

Shares in addiction treatment specialist Indivior (INDV) were flat at 340.4p on a new drug application submission in the US for schizophrenia treatment.

Insurance business Hiscox (HSX) nudged 1.5% higher to £12.99 after announcing net claims from Hurricanes Harvey and Irma of $225m based on an insured market loss of $35bn.

Investors were cautious on the latest news from Kaz Minerals (KAZ) as the stock was broadly unmoved at 777.5p. The copper miner said its Aktogay sulphide plant had been declared commercial and associated sales, operating costs and interest expenses will be recorded in its income statement from this month.

Closed-ended investment firm Tritax Big Box REIT (BBOX) agreed to acquire a distribution centre at Northamptonshire from Royal Mail (RMG) for £48.8m.

SMALL CAP RISERS AND FALLERS

Travel retailer On The Beach (OTB) flagged a one-off exceptional cash cost associated with helping customers organise alternative travel arrangement or providing refunds, but remained stable at 394.7p.

Jet2 owner Dart Group (DTG) was the biggest riser among the small cap airlines following Monarch's announcement, up 6.1% to 569.5p.

Newspaper publisher Daily Mail and General Trust (DMGT) fell 1.9% to 636p after warning that adjusted pre-tax profit would be at the lower end of forecasts.

Progress on fuel cell developer AFC Energy's (AFC) commercialisation plan excited the market, triggering a 20.4% rally in the share price to 12.9p.

Asset write-downs and tough trading was a toxic combination for Stanley Gibbons (SGI). Shares in the stamp dealer plummeted 10% to 8.4p as its losses deepened and the company explored its options.

Story provided by StockMarketWire.com

Related Company: IAG

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