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FTSE 100 lifted by miners, travel stocks; earnings shine

Jun 8, 2021

By Amal S

(Reuters) -London’s FTSE 100 ended higher on Tuesday, helped by gains in miners and travel and leisure stocks, while upbeat earnings from Intermediate Capital Group and British American Tobacco further lifted sentiment.

The blue-chip FTSE 100 index was up 0.3%, while the domestically focused mid-cap FTSE 250 index dipped 0.1%, dragged by weakness in technology and industrial stocks.

Travel-related stocks climbed 2%, with Flutter Entertainment, Compass Group, Just Eat Takeaway.com and InterContinental Hotels Group among the top gainers.

However, a report said Britain’s proposed June 21 lifting of lockdowns could be delayed by a fortnight as COVID-19 cases continue to mount.

“In news there’s nothing really to warrant this optimism for the travel sector but maybe people are looking through these events as short-term developments that eventually will sort themselves out and people will be able to travel again,” said Andrea Cicione, head of strategy at TS Lombard.

“I think it’s a bit of a bet, but probably is the right one.”

After breaching the 7,000 mark in mid-April, the export-heavy FTSE 100 was on course to post a fifth month of gains as a gradual reopening from COVID-19 lockdowns sparks optimism around a faster economic recovery.

Miners including Rio Tinto, Anglo American, Glencore and BHP rose between 0.1% and 1%.

Adding to the upbeat mood, Intermediate Capital Group climbed 5.9% to a record high, after the alternative asset manager posted a 19% jump in its annual third-party assets under management.

British American Tobacco added 0.4% after it raised its annual revenue growth forecast to more than 5% at constant currency.

Aviva gained 2.7% after activist investor Cevian Capital took a 4.95% stake in the British insurer.

(Reporting by Devik Jain and Amal S in Bengaluru; Editing by Subhranshu Sahu and Bernadette Baum)

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