Strong earnings pull British shares higher; Aviva climbs

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imageStock Markets6 hours ago (Jun 08, 2021 17:12)

© Reuters. FILE PHOTO: A man shelters under an umbrella as he walks past the London Stock Exchange in London, Britain, August 24, 2015. REUTERS/Suzanne Plunkett/File Photo

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 (LON:ICP) and British American Tobacco (LON:BATS) 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 (LON:CPG), Just Eat (LON:JE) 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 (LON:RIO), Anglo American (LON:AAL), Glencore (LON:GLEN) 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 (LON:AV) gained 2.7% after activist investor Cevian Capital took a 4.95% stake in the British insurer.

FTSE 100 lifted by miners, travel stocks; earnings shine

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