Travel, commodity stocks boost London shares on vaccine hopes

A sharp rally in cyclicals like energy and bank stocks on vaccine-related cheer and hopes of a speedy economic recovery have helped the FTSE 100 index gain more than 14 per cent this month, setting it for its best month on record. — Reuters pic
A sharp rally in cyclicals like energy and bank stocks on vaccine-related cheer and hopes of a speedy economic recovery have helped the FTSE 100 index gain more than 14 per cent this month, setting it for its best month on record. — Reuters pic

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LONDON, Nov 24 — London’s FTSE 100 rose today, boosted by commodity stocks as investors remained hopeful of a swift economic recovery based on positive Covid-19 vaccine updates, while travel stocks gained after England sought to shorten quarantine with a new testing system.

The commodity-heavy index rose 0.8 per cent, with energy and mining stocks jumping on higher crude and metal prices.

The domestically focused mid-cap FTSE 250 index added 0.8 per cent after England said it will introduce a new Covid-19 test-and-release scheme on December 15 to reduce quarantine period for incoming passengers from high-risk countries.

Shares of British Airways owner IAG and low-cost airline EasyJet Plc jumped 5.4 per cent and 5.7 per cent, respectively, while travel group TUI AG and cruise operator Carnival Plc surged 10.4 per cent and 9.3 per cent each.

“Today it seems to be just sort of a low-key dregs of the more recent optimistic trading based on the vaccine news,” said Connor Campbell, financial analyst at Spreadex.

“Investors are still thinking long-term post-vaccine at the moment and are looking into various sectors that have been hemorrhaged in the last eight months.”

A sharp rally in cyclicals like energy and bank stocks on vaccine-related cheer and hopes of a speedy economic recovery have helped the FTSE 100 index gain more than 14 per cent this month, setting it for its best month on record.

Pets at Home Group tumbled 7.7 per cent after it warned of an uncertain outlook in the initial weeks of a fresh UK lockdown.

Catering firm Compass Group Plc rose 4.2 per cent even as it reported a 75.5 per cent slump in annual pretax profit.

Meat processor Cranswick Plc added 3.6 per cent after posting a higher first-half profit.

Technology firm IQE Plc rose 4.1 per cent after it forecast a higher annual revenue and said its chief executive officer would step down after three decades at the helm. — Reuters

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