Home Stock & Shares UK shares end at three-month highs

UK shares end at three-month highs

by Jonathan Adams
UK shares

London-listed shares finished near three-month highs, marking their third straight week of gains as optimism around a post-coronavirus economic recovery drove investors back to riskier assets

London-listed shares finished at near three-month highs on Friday, marking their third straight week of gains as optimism around a post-coronavirus economic recovery drove investors back to riskier assets.

The blue-chip FTSE 100 (FTSE) and the mid-cap index (FTMC) both ended about 2.3% higher, posting their best week in nearly two months.

An unexpected rise in U.S. non-farm payrolls during May also spurred gains late in the session, with Wall Street indexes rallying on the data.

EasyJet, cruise operator Carnival and British-Airways owner IAG surged as a report said some European countries were keen to adopt transport corridors, letting British holidaymakers visit Mediterranean resorts without quarantining for 14 days on their return.

Carnival, which is slated to leave the FTSE 100 later in the month, also topped the index for the day with a 19.8% gain.

Investors continued to bid up airlines despite the sector being in turmoil, betting that they will survive the crisis and that their shares have been oversold, said Russ Mould, investment director at AJ Bell.

British stocks have gained substantially over the past two weeks, with the domestically-focussed mid-cap index rising sharply after the UK government outlined plans to reopen several retail spaces from June.

Shopping centre operator Hammerson PLC was the best weekly performer among British stocks, adding 86% in its best week ever, after it said its flagship destinations in England would reopen from June 15.

The British bluechip index is now about 15% off record highs hit in January, with the gradual reopening of the economy and improving economic indicators inviting more money back into markets.

Housebuilder Taylor Wimpey rose 1.7% after it said it had seen a surge in interest in buying homes since its English sales centres and show homes came back on line.

Premier Oil surged 25.2% after saying it would issue discounted shares to activist hedge fund ARCM representing 8.91% of the company to pay for North Sea assets from BP.

Important
This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
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