LONDON, Oct 5 — London’s FTSE 100 rose today, lifted by oil stocks as crude prices jumped after doctors treating US President Donald Trump for Covid-19 hinted that he was doing well, while Cineworld fell sharply after it said it was considering temporarily closing all US and UK screens.
The blue-chip index hit its highest level since September 18 and was last up 0.5 per cent, led by gains in oil majors BP and Royal Dutch Shell, while the mid-cap index rose 0.8 per cent.
“Investors are focusing on the broader picture right now with sentiment turning slightly positive on anticipation of fresh US stimulus,” said David Madden, an analyst at CMC Markets. “However, traders will remain cautious until there is more clarity on the US presidential election.”
The FTSE 100 was on track to post a third consecutive session of gains even as growing coronavirus fears and Brexit uncertainty kept hopes for further upside in check.
A failure to secure a post-Brexit trade deal with the European Union, coupled with the Covid-19 outbreak, could cost the UK around £134 billion (RM722 billion) each year in lost GDP for a decade, research by law firm Baker & McKenzie showed.
The final services PMI numbers for September showed Britain’s economy proved more resilient than initially thought despite a tightening of lockdown restrictions and an end to a temporary government subsidy for businesses.
Shares of Cineworld slumped 30.0 per cent after the world’s second-biggest cinema operator said it was considering temporarily closing all its screens in the United States and Britain after studios pulled major releases.
Engineering company Weir Group Plc gained 16.3 per cent after it said it had agreed to sell its oil and gas division to US heavy equipment maker Caterpillar Inc for $405 million in cash.
Luxury brand Mulberry dropped 3.0 per cent after it reported a year to end-March loss of £14.2 million. — Reuters
