UK equities record best week since mid-March - Reuters - Financial Daily News Site

UK equities record best week since mid-March – Reuters

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

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  • Miners rise as metal prices gain ground
  • Deliveroo down on JPMorgan downgrade
  • Banks, retailers among top weekly performers
  • FTSE 100 up 0.3%, FTSE 250 adds 0.6%

May 27 (Reuters) – The FTSE 100 inched higher on Friday, recording its best weekly showing since mid-March, although oil and gas stocks came under renewed pressure after the UK government’s windfall tax plan this week.

The FTSE 100 (.FTSE) rose 0.3%, with most European markets ending the week higher, taking heart from a Wall Street rally after the Federal Reserve minutes suggested it could pause its rapid rate hikes later this year.

Banks (.FTNMX301010) gained 1.1%, while UK-listed global miners such as Glencore (GLEN.L), Rio Tinto (RIO.L) and Antofagasta (ANTO.L) rose about 1.5% each as copper and iron ore prices were boosted by a weaker dollar.

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However, oil majors such as BP (BP.L) and Shell (SHEL.L) slipped about 2% after Britain announced a 25% windfall tax on oil and gas producers’ profits on Thursday. read more

Power generators such as SSE (SSE.L), Centrica (CNA.L) and Drax (DRX.L) dropped between 1.6% and 4.2%, while Harbour Energy (HBR.L), the biggest UK North Sea oil and gas producer, dropped 10.8% and EnQuest (ENQ.L) fell 10.4%.

“The big shakedown will be how investors in the UK’s oil and gas majors like BP and Shell will feel about windfall taxes,” said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown.

“While not a long-term problem for profits, the incentivisation to invest their profits could see dividends trimmed.”

The domestically oriented FTSE 250 midcap index (.FTMC) gained 0.6%, with transport group FirstGroup Plc (FGP.L) extending gains for a second day after attracting buyout interest from an investment firm. read more

Both the FTSE 100 and FTSE 250 indexes posted their biggest weekly gains in over two months, with banks and retailers providing the biggest boost.

Retailers have gained this week after the government’s new 15 billion pound ($19 billion) package of support for households spurred hopes of more spending. read more

Surging commodity prices and weaker pound have boosted the exporter-heavy index

Food delivery company Deliveroo (ROO.L) slipped 1.4% after JPMorgan downgraded the stock to “neutral”.

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Reporting by Sruthi Shankar and Amal S in Bengaluru; Editing by Subhranshu Sahu and Jon Boyle

Our Standards: The Thomson Reuters Trust Principles.

Tags: #equities #record #week #midMarch #Reuters

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