The FTSE 100 surged on Tuesday morning as retailers get set to reopen and more economies reduce lockdown restrictions.
All non-essential retailers will be able to reopen in England from 15 June, Prime Minister Boris Johnson announced, with outdoor markets and car showrooms able to reopen from 1 June.
The UK’s benchmark index jumped 1.75% in early morning trade to 6,097.89.
The rise mirrored strong gains seen in Asian stock markets as lockdowns across the world begin to ease.
Japan’s Nikkei 225 soared 2.55%, while China’s Shanghai Composite gained 1% and the Hang Seng in Hong Kong jumped 2.07%.
TRAVEL STOCKS SOAR ON SPAIN TOURIST PLANS
Travel stocks were the biggest risers on Tuesday morning, after Spain’s Prime Minister Pedro Sanchez said the country will open up to tourists from July.
That sent shares in TUI (TUI) soaring 36% to 412p with International Consolidated Airlines (IAG), which owns British Airways and Spanish airlines Iberia and Vueling as well as Ireland’s national carrier Aer Lingus, jumping 17.4% to 224p.
Jet2 owner Dart Group (DTG), which gains around half of its revenue from the Spanish market, rose 14% to 776p while budget airline EasyJet (EZJ) gained 11.7% to 622p.
Rival low cost carriers Ryanair (RYA) and Wizz Air (WIZZ) also gained, rising 8.9% to €11.59 and 8.7% to £32.60 respectively.
ASTON MARTIN RALLIES AFTER BOSS QUITS
Luxury car maker Aston Martin Lagonda (AML) rallied 32% to 46.8p, on confirming reports over the weekend that chief executive Andy Palmer had stood down and been replaced by Mercedes Benz executive Tobias Moers.
Aston Martin has struggled since its IPO in 2018, with weak sales even before the coronavirus hit causing losses to soar and sending its share price tumbling over 90% since its stock market float.
Commenting on the new appointment, executive chairman Lawrence Stroll said, ‘I am delighted to welcome Tobias to Aston Martin Lagonda.
‘He is an exceptionally talented automotive professional and a proven business leader with a strong track record during his many years at Daimler AG, with whom we have a longstanding and successful technical and commercial partnership, which we look forward to continuing.’
KAINOS PULLS DIVI DESPITE PROFIT JUMP
IT services provider Kainos (KNOS) fell 1.1% to 876p as it said it would not declare a final dividend in a bid to preserve cash, despite reporting strong full year numbers with a double-digit jump in annual profit underpinned by a strong uptick in sales.
For the year to 31 March Kainos reported a 10% increase in pre-tax profit to £23.2m and an 18% rise in revenue to £178.8m.
‘Against the backdrop of an uncertain global economic climate, the directors believe that the group's very strong sales performance and consequent increase in contracted backlog provide a solid foundation which supports near-term performance,’ the company said.
OTHER COMPANY NEWS
UK software provider Softcat (SCT) plunged 5.5% to £11.88 on announcing that it had traded ‘satisfactorily’ during its third quarter through April, having grown revenue, gross profit and operating profit.
Bus and train operator Stagecoach (SGC) jumped 9.6% to 65.5p as it welcomed a move by the UK government to restart bus, tram and light rail services in England.
The Department for Transport announced that it was offering £254m of further funding for buses and £29m for trams and light rail to help increase the frequency and capacity of services as lockdowns ease.
Defence contractor Ultra Electronics (ULE) rose 2.4% to £20.04 after its joint venture with Sparton DLS won subcontracts worth $204.6m for the manufacture of sonobuoys for the US Navy.
Auto dealer Marshall Motor (MMH) firmed 6% to 109.75p, having confirmed it would reopen its UK showrooms next week, in line with government rules.
Advertising company S4 Capital (SFOR) gained 0.8% to 247p as it acquired Latin American data and analytics consultancy Digodat for an undisclosed sum.
Respiratory drug developer Synairgen (SNG) added 4.9% to 53.5p despite posting a full year loss owing to research and development spending, as it continued to progress an investigation into a potential coronavirus treatment.
