LONDON, Aug 16 — British shares rose after a delayed open today following the London Stock Exchange’s longest outage in eight years, as more stimulus plans from China and strong US retail sales data drove gains across sectors.
The main index rose 0.4 per cent and the mid-cap FTSE 250 was up at similar levels by 1007 GMT, rebounding after two straight sessions of steep losses. The losses have put the blue-chip index on course for its worst month in nearly four years.
The outage, which delayed trading for almost two hours, came during a volatile week for global financial markets, which were hit by worries about a US recession and a prolonged US-China trade spat.
In an update posted on its website, LSE said it was still investigating the issue.
“It all looks fine,” a trader said when asked if there were any issues in trading or a backlog of orders.
The market was bolstered by shares of financial companies, particularly those with a bigger exposure to Asia, after China’s state planner said it would roll out a plan to boost disposable income for 2019-2020 to revive consumption as the economy slows.
Precious metals miner Fresnillo, however, lost two per cent as gold prices fell on investors locking in profits after a strong run.
LSE shares were up one per cent.
Among news-driven moves, Mr Kipling owner Premier Foods added 2.5 per cent after Sky News reported overnight that former Reckitt Benckiser CFO Colin Day was among leading contenders to become Premier Foods chairman.
Defence contractor Ultra Electronics rose nearly three per cent after ERAPSCO, a JV between the London-listed company and US-based Sparton DeLeon Springs, won a contract worth up to US$1.04 billion (RM4.35 billion) to make sonobuoys for the US Navy.
Acacia Mining dipped one per cent after the company said production at its North Mara mine in Tanzania will not resume until a government-issued prohibition notice is lifted.
AIM-listed Burford Capital, which had jumped in the last session after replacing its CFO, slipped five per cent. Shares in the litigation funder have plunged over 40 per cent since coming under attack from short-seller Muddy Waters. — Reuters
