UK stocks continued to inch higher at lunchtime on Monday, with the FTSE 100 on track for its best month in more than 30 years, having rallied 14% so far in November.
While there was limited company news to propel the markets, investors continued to weigh optimism about potential Covid-19 vaccines against fears of a more severe economic fallout from the pandemic as virus cases continued to rise. There’s also the spectre of a potential no-deal Brexit to think about as the 31 December transition period deadline nears
At 11.50am, the benchmark FTSE 100 was trading just 0.04% up at 6.370.17, having lost some of its early morning momentum. Retail, support services and leisure goods sectors provided much of the fuel, while oil, telcos and banks dragged.
The mid-cap FTSE 250 nudged 0.2% higher to 19,503.35, having enjoyed its own 13% surge this month.
NEW LEADERSHIP AT LLOYDS
Currently CEO of wealth and personal banking at HSBC (HSBA), Nunn will replace Lloyds’ incumbent boss Antonio Horta-Osorio in 2021.
Drug company Indivior’s (INDV) rally ran out of puff after it insisted it will ‘vigorously defend’ itself against a £1 billion claim brought by former parent Reckitt Benckiser (RB.) over an opioid addiction treatment.
The stock, which had earlier jumped 10%, saw its gains limited to a more meagre 2% by lunchtime as investors took a more considered view of the news. The share price was changing hands at 101.7p.
Indivior said the claim against the company in London is ‘without merit’ and it has ‘strong grounds for defending against the claim should it be served’.
Consumer goods giant Unilever (ULVR) reversed earlier gains to dip 0.4% to £45.67 as the Marmite maker said it had completed the unification of its British and Dutch businesses into a single UK-based parent company.
Mike Ashley’s Frasers (FRAS) fell 2% to 437.4p after confirming it has offered £50 million of emergency funding to Philip Green’s Arcadia fashion group, which is teetering on the brink of administration.
Frasers is ‘now awaiting a substantive response’ and said that should efforts to agree an emergency funding package fail and Arcadia enters into administration, then it would be ‘interested in participating in any sale process’.
KEYSTONE CLIMBS ON GUIDANCE UPGRADE
During the second half of the year to date, Keystone has continued to ‘see recovery across all areas of its business with like for like performance having now returned to very near pre-Covid levels’.
Wandisco (WAND:AIM) lost earlier modest gains to slip 0.6% lower to 457p after the LiveData company announced a contract worth $3 million with ‘one of the world’s largest telecommunications companies’ to migrate one of its on-premises data lakes to Microsoft Azure ‘as its embarks on its cloud transformation journey’.