|Day's Range||6,220.14 - 6,338.83|
|52 Week Range||4,898.80 - 7,727.50|
(Bloomberg) -- The latest changes to the U.K.’s blue-chip stock benchmark are set to demonstrate how Covid-19 has disrupted consumer spending and the business world.Airline EasyJet Plc, airplane parts-maker Meggitt Plc and cruise ship operator Carnival Plc are among four stocks expected to exit the FTSE 100 index following a quarterly re-balancing based on market capitalizations at Tuesday’s close, according to Helal Miah, an analyst at investment broker The Share Centre.B&Q home-improvement store owner Kingfisher Plc and household repair group HomeServe Plc probably earned promotion to the benchmark from the mid-cap FTSE 250 index, having prospered due to more time spent at home during lockdowns, along with cybersecurity group Avast Plc, whose business has benefited from the work-from-home trend, Miah said.“This FTSE reshuffle is highly reflective of the current crisis environment,” Miah wrote in emailed comments. “Out go stocks from sectors that have taken a beating and questions arise as to how and whether some of these can manage this crisis,” he said.The rejig may leave demoted stocks vulnerable to selling by funds whose aim is to mirror the performance of the FTSE 100, with new entrants benefiting as the so-called tracker funds increase their weightings.Both Homeserve and Avast would be entering the blue-chip gauge for the first time, while Kingfisher is set to rejoin the index after its demotion to the FTSE 250 in March. FTSE Russell, a unit of London Stock Exchange Group Plc, is set to confirm the changes after Wednesday’s close.Centrica, GVCThe final company set to exit the FTSE 100 is Centrica Plc, according to Miah’s analysis, in a demotion that would represent a moment of historical significance for a stock that under different names has been ever-present in the gauge since 1986. That was the year the Conservative government of Margaret Thatcher privatized British Gas through an initial public offering.Gambling company GVC Holdings Plc will most likely head the other way, returning to the blue-chip index for the first time since March 2019.According to guidelines from the index provider, a stock will be removed from the FTSE 100 if its market capitalization ranks 111 or below among eligible shares at the time of the re-balancing, while any that rise to 90th position or above join the index. Changes in the final review go into effect on June 22.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The blue-chip FTSE 100 <.FTSE> and the domestically-focused mid-cap FTSE 250 <.FTMC> each added 0.9%, with both indexes ending at their highest levels since early-March. A report suggesting further fiscal relief for local businesses increased optimism, while investors continued to watch for the British economy gradually emerging from the coronavirus lockdown. The FTSE 100 was propped up by resource heavyweights BP PLC <BP.L> and BHP Group <BHPB.L> as commodity prices rose on the prospect of increased demand and - in the case of oil- more OPEC production cuts.
EasyJet <EZJ.L> and cruise operator Carnival <CCL.L> are set to lose their seat at the top table of British blue chips after the COVID-19 crisis knocked the value of their shares to below the threshold of London's prestigious FTSE 100 <.FTSE> index. Hard-hit by travel bans, the low-cost airline lost as much as two thirds of its market value during the peak of the pandemic crisis and despite a vigorous bounce-back, its market capitalisation was only ranked 125th based on Monday's stock market close in London. FTSE Russell, which will announce its quarterly shuffle of the FTSE 100 index on Wednesday, requires companies to be ranked at least 110th to be part of the blue-chip index.
Associated British Foods <ABF.L> jumped 8% after its fashion brand Primark outlined plans to reopen all 153 of its stores in England on June 15. The stock was among the best performers on the blue-chip FTSE 100 index <.FTSE>, which added about 1.5% for the day. The domestically-sensitive mid-cap index <.FTMC> was up 1.4%, propped up by consumer discretionary stocks on hopes that the UK economy would rebound.
The Zacks Analyst Blog Highlights: Bayer Aktiengesellschaft, InflaRx, Legrand, Innate Pharma and DiaSorin
The blue-chip FTSE 100 <.FTSE> was down 2.3% with travel <.FTNMX5750> stocks serving as the top decliners, while the mid-cap FTSE 250 <.FTMC> shed 1.7% to snap a nine-day winning streak. Optimism over the reopening of a bulk of the British economy next month saw the domestically inclined FTSE 250 marking its best two-month rise since 2009. For the day, bank stocks <.FTNMX8350> tracked a decline in gilt yields as investors fled to perceived safe havens ahead of U.S. President Donald Trump's news conference on China's move to impose a national security law on Hong Kong that has raised concerns over its function as a global finance hub.
(Bloomberg) -- British Gas’s more than three-decade connection to the U.K.’s blue-chip stock index looks set to come to an end after shares of parent Centrica Plc plunged by more than half this year.Analysts expect Centrica to be demoted from the FTSE 100 benchmark in a quarterly re-shuffle next week. That would represent a moment of historical significance for a stock that under different names has been ever-present in the gauge since 1986, the year that the Conservative government of Margaret Thatcher privatized British Gas through an initial public offering.The shares’ 56% slide this year has reduced the company’s market value to a level where it no longer passes the test to retain its position in the FTSE 100.“Centrica’s ejection would cap a multi-year share-price slide that dates back to a peak of almost 400 pence in 2013,” Russ Mould, investment director at brokerage AJ Bell, said in emailed commentary. The stock closed on Thursday at 39.05 pence, valuing the business at 2.3 billion pounds ($2.8 billion).According to guidelines from index provider FTSE Russell, a stock will be removed from the FTSE 100 if its market capitalization ranks 111 or below among eligible shares at the time of the re-balancing. At its current valuation, Centrica is the 140th biggest company on the FTSE All Share index. The next quarterly review will be based on June 2 closing prices and announced on June 3.The first half of 2020 has been torrid for Centrica, which suspended its dividend and paused a planned sale of North Sea oil and gas assets last month after the Covid-19 pandemic sapped energy demand and triggered a slump in crude prices. Chief Executive Officer Iain Conn stepped down in March after five years leading the group.But the share price fall dates back a lot further than that. On top of a longer-term slide in oil prices, the company has faced competition from smaller challengers like Octopus Energy and Bulb, while also being hit by a price cap by the U.K. Office of Gas and Electricity Markets. The shares are now 90% below a record high set in 2013.Tell SidBritish Gas Plc joined the FTSE 100 on Dec. 9, 1986 after a share sale that was promoted in a government television campaign urging Britons to spread word of the investment opportunity by telling “Sid,” a name that was meant to represent the general public.In 1997, the company, whose history stretches back more than 200 years, was split into separate firms, BG Plc and Centrica Plc. BG later became BG Group Plc and was bought by Royal Dutch Shell Plc in a deal announced in 2015.British Gas, under Centrica, has seen its share of the domestic market steadily decline over the past 15 years, according to Ofgem data, also losing ground to rivals like Electricite de France SA and SSE Plc.That said, a potential turnaround isn’t being ruled out by some analysts.“Following years of structural challenges faced by Centrica in the U.K. retail market, failed attempts to deliver growth in its consumer business and falling profits from its commodity-exposed units, we believe the worst is behind the company,” Citigroup analyst Jenny Ping wrote in a May 21 note.The company has sufficient liquidity to navigate volatile demand due to the pandemic, and a future simplification of the group could boost the shares, Ping wrote.A spokesman for Centrica declined to comment on the upcoming index review when reached by phone.Other stocks that might be demoted from the FTSE 100 in next week’s review include Princes and P&O cruise operator Carnival Plc, budget airline EasyJet Plc and plane-parts maker Meggitt Plc, reflecting the impact of the Covid-19 crisis on global travel demand, according to Helal Miah, an analyst at investment broker The Share Centre, who spoke by phone.That would potentially leave them vulnerable to selling by funds whose aim is to mirror the performance of the FTSE 100 -- known as tracker funds.Stocks that could be added to the benchmark gauge include cybersecurity firm Avast Plc, betting company GVC Holdings Plc and home emergency and repair services provider HomeServe Plc, Miah said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Executives, experts, and influencers join the Yahoo Finance team to discuss what's moving the world of finance.
Europe stocks rally on hopes that the European Union will unveil large stimulus package to reduce the economic fallout from the coronavirus pandemic.
The blue-chip FTSE 100 <.FTSE> rose another 1.2% after ending Wednesday at an 11-week high, with AstraZeneca <AZN.L> the biggest boost. The group, which is developing a leading coronavirus vaccine with Oxford University, said it may have to consider introducing vaccine trial participants to the virus. GSK <GSK.L> was the second biggest boost to the index as it laid out plans to produce 1 billion doses of vaccine efficacy boosters for COVID-19 shots next year.
The recovery from the coronavirus financial crash will take time for European stocks which are expected to end 2021 around 10% below this February's record high, a Reuters poll of about 30 fund managers, strategists and brokers showed. Taken over the past two weeks the survey showed the pan-European STOXX 600 <.STOXX> would reach 347 points, 368 points and 390 points by end-2020, mid-2021 and at the end of 2021 respectively. The index hit a record high of 433.9 points on Feb. 19 but the coronavirus pandemic and lockdowns imposed across the world to limit its spread triggered a global sell-off in anticipation of recessions caused by entire countries closing down.
European stocks ticked up on Wednesday after the European Union announced a larger-than-expected stimulus bill. Yahoo Finance’s Edmund Heaphy discusses.
Euro Zone stocks were supported as the European Commission (EC) prepares to unveil a plan to help the EU economy recover.
The blue-chip FTSE 100 <.FTSE> added 1.3%, while the domestically focussed FTSE 250 <.FTMC> rose 1.2% in anticipation of thousands of retailers emerging from lockdowns next month, while reports of a bigger-than-expected euro zone stimulus package also helped sentiment.
(Bloomberg) -- U.K. stocks rose after Prime Minister Boris Johnson outlined plans for the re-opening of outdoor markets, car showrooms and shops in England next month, providing relief for retailers that have been forced to shut down in an effort to control the spread of the coronavirus.The benchmark FTSE 100 Index rose as much as 2.3% on Tuesday -- outpacing other major European gauges -- with airlines and travel stocks among the biggest gainers on optimism about travel restrictions easing in some European countries, and retailers rising after the government’s announcement. U.K. stock markets were closed for a public holiday Monday, while Europe’s benchmark Stoxx 600 rose 1.5% that day amid a bailout for Deutsche Lufthansa AG.Consumer stocks rose after Johnson said Monday evening that England’s outdoor markets and car showrooms will be able to reopen from June 1, as soon as they are able to meet the coronavirus guidelines to protect shoppers and workers, while all other non-essential retail outlets will be expected to be able to reopen from June 15 if the government can control the spread of the virus. U.K. car dealership stocks including Pendragon Plc and Vertu Motors Plc jumped.“Lockdown has caused considerable damage to the U.K. consumer economy,” Shore Capital analysts including Clive Black wrote in a note Tuesday, calling the re-opening plans a relief for non-discretionary retailers. “We expect calendar year 2021 to be one of stabilization at this stage.” British midcap stocks also rallied, with the FTSE 250 Index gaining as much as 2.9% to the highest since April 30.Next Plc shares rose as much as 6.6% on Tuesday, while Primark owner Associated British Foods Plc gained as much as 6.2%. Both stocks are down 31% so far this year. Pub operator JD Wetherspoon Plc -- which last week outlined plans to reopen its 875 pubs with special precautions when it has the official go-ahead -- surged as much as 10%, while Marston’s extended its rally following Friday’s announcement on a brewing joint venture with Carlsberg A/S. PayPoint Plc, which provides in-store bill payment services for customers, rose as much as 9.5%. For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The mid-cap FTSE 250 <.FTMC> rose 3.3% to its highest close in more than 2-1/2 months after Johnson said Britain will reopen thousands of high street shops, department stores and shopping centres next month. "The consumer will need to do the bulk of the heavy lifting so confidence to get out of the house and start to live a normal life will be critical to this recovery," Stephen Innes, markets strategist at AxiCorp, said. The FTSE 100 has recovered sharply from its March sell-off and is now on course for its biggest two-month percentage gain in two years.
The blue-chip FTSE 100 <.FTSE> declined 0.4%, with Prudential <PRU.L> sliding 9.3% to the bottom of the index while HSBC <HSBA.L> slipped to its lowest since 2009. "Investors may have been more focused on the continued unhelpful dialogue between the U.S. and China, hence they chose to trim some risk exposure," said Ian Williams, economics & strategy research analyst at Peel Hunt. The domestically focused FTSE 250 <.FTMC>, nudged 0.1% higher, boosted by pub operator Marstons <MARS.L> which surged 102.7% after saying it would combine its brewing business with Carlsberg UK.
The decision drew a warning from President Donald Trump that Washington would react "very strongly" against the attempt to gain more control over the former British colony. The U.S. Senate published a bill with bipartisan support that would sanction Chinese officials who implement the law.
The world's biggest credit data firm Experian Plc <EXPN.L> jumped 7.4% to a more-than-10-week high after it reported higher annual revenue. The blue-chip FTSE 100 <.FTSE> gained 1.1%, after falling as much as 0.7% earlier in the day. The mid-cap FTSE 250 <.FTMC> added 0.3%, extending its rally to a fourth day.
The domestically focussed FTSE 250 <.FTMC> rose 0.6%, boosted by digital payments solutions provider Network <NETW.L> which jumped 9.4% after Morgan Stanley raised its rating to "overweight" from "equal weight". The blue-chip FTSE 100 <.FTSE> fell 0.8% after earlier jumping more than 1%. Both indexes had made their strongest gains in more than a month in the previous session, powered by positive data from an early-stage trial of a coronavirus vaccine.