LONDON, Jan 27 ― British stocks ended higher yesterday after drugmaker AstraZeneca denied reports that its Covid-19 vaccine was less effective in the elderly population, while Indivior surged after its former parent withdrew a US$1.4 billion (RM5.6 billion) legal claim.
The blue-chip FTSE 100 index climbed 0.2 per cent, with automakers and healthcare stocks leading the gains, while the mid-cap index rose 0.5 per cent.
However, weakness in general retailers limited gains after British retail sales suffered their biggest annual drop since May this month, suggesting the latest lockdown is taking a heavy toll on many shops.
The mood was also dampened by a jump in Britain's unemployment rate to 5.0 per cent, its highest in nearly five years, in the three months to November.
“Even though the unemployment rate is at 5 per cent, it was meant to go to 5.1 per cent. So, there were positive angles to pick among the negative news and I think that seems to have benefited sentiment alongside the pound falling,” said Connor Campbell, a financial analyst at SpreadEx.
Drugmaker AstraZeneca gained 0.7 per cent and gave the second biggest boost to the blue-chip index after it denied reports its Covid-19 vaccine was not very effective for people over 65.
The FTSE 100 has recorded consistent monthly gains since November on expectations of a vaccine-led recovery, but it has lost steam as extended lockdowns hit business activity.
The International Monetary Fund cut Britain's growth outlook for 2021 because of a resurgence in novel coronavirus cases, and forecast it would take until next year for the economy to regain its pre-pandemic strength.
Britain's Rolls-Royce dropped 1.8 per cent after it downgraded expectations for how much its engines would fly this year.
Indivior leapt 13.1 per cent to the top of the FTSE 250 index after it said late on Monday that former parent Reckitt Benckiser would withdraw a US$1.4 billion claim against the company. ― Reuters
