11th Oct 2021 17:08
(Alliance News) - Stocks in London ended mixed on Monday with the FTSE 100 getting a boost from heavyweight oil majors and mining companies, while on AIM, fast fashion retailers bore the brunt of ASOS's woes.
The FTSE 100 index closed up 51.30 points, or 0.7%, at 7,146.85. The FTSE 250 ended down 48.70 points, or 0.2%, at 22,487.47 and the AIM All-Share closed down 2.48 points, or 0.2%, at 1,209.05.
The Cboe UK 100 ended up 0.5% at 708.80, the Cboe UK 250 closed down 0.5% at 20,281.30 and the Cboe Small Companies ended flat at 15,531.60.
In Paris, the CAC 40 stock index ended up 0.1%, while the DAX 40 in Frankfurt ended down 0.1%.
"The FTSE 100 has outperformed largely due to outperformance in financials and basic resources, while the FTSE 250 has slipped. Rising aluminium and copper prices are helping to push the likes of Anglo American, Antofagasta and the big Australian miners of Rio Tinto and BHP higher, while oil prices above USD80 a barrel are also giving a lift to BP and Royal Dutch Shell," said Michael Hewson of CMC Markets.
In the FTSE 100, miners were higher amid higher base metal prices. Anglo American closed up 5.2%, Antofagasta up 4.3%, Rio Tinto up 3.6%, Glencore up 3.3% and BHP up 3.2%.
Oil majors also ended among the best performers, tracking spot oil prices higher. BP closed up 1.9%, while Royal Dutch Shell 'A' and 'B' closed up 1.7% and 1.5% respectively.
Brent oil was trading at USD83.77 a barrel at the equities close on Monday, up sharply from USD83.15 at the close Friday.
"Oil prices are rising once again today, up a little over 2%, and hitting fresh highs as the energy crisis continues to drive support for crude. The flooding in China may have given oil an extra lift on Monday, but we're looking at a tight market that OPEC+ is allowing to run hot after a long period of low prices," explained Oanda Markets analyst Craig Erlam.
AstraZeneca finished 1.3% higher after the Anglo-Swedish drugmaker said its long-acting antibody combination reduced severe Covid-19 or death in patients with mild-to-moderate symptoms.
The trial met its primary endpoint, with a dose of AZD7442 cutting the risk of developing severe Covid or death by 50% compared to placebo in outpatients who had been symptomatic for seven days or less. A total of 90% of the participants enrolled for the Tackle phase three study were from populations at high risk of progression to severe Covid-19, including those with co-morbidities.
AstraZeneca said it will be discussing the data with health authorities, having last week announced the submission of a request to the US Food & Drug Administration for emergency use authorisation for AZD7442.
On AIM, ASOS closed down 12% after the online fashion retailer said Chief Executive Nick Beighton is stepping down, as it warned on profit in the year ahead due to cost pressures and the falling away of Covid-19-related benefits.
Revenue for the financial year to August 31 jumped 20% to GBP3.91 billion as retail sales grew 19% to GBP3.78 billion, while pretax profit rose 25% to GBP177.1 million. However, sales growth in the year ahead is expected to be in the range of 10% to 15%, with interim revenue growth in "mid-single digits".
This reflects tougher comparatives and industry-wide supply chain pressures. The company expects sales to accelerate in the second half of the year and has laid out plans to generate GBP7 billion of annual revenue over the medium-term.
Adjusted pretax profit for the 2022 financial year is expected around GBP110 million to GBP140 million. This would be well below the GBP193.6 million registered for the financial year just ended.
ASOS shook up its board to "underpin delivery of the next phase of its global growth strategy". CEO Beighton is stepping down after 12 years with ASOS, including six as CEO, and a search is underway for his replacement.
AIM-listed rivals boohoo Group and Quiz closed down 1.1% and 4.3% respectively in a negative read-across.
The pound was quoted at USD1.3625 at the London equities close, down from USD1.3645 at the same time on Friday.
The euro stood at USD1.1570 at the European equities close, down from USD1.1578 late Friday.
Against the yen, the dollar was trading at JPY113.28, up sharply from JPY112.03 late Friday - its highest level since late 2018.
Stocks in New York were higher at the London equities close as earnings season gets underway this week.
The Dow Jones Industrial Average was up 0.4%, the S&P 500 index up 0.4% and the Nasdaq Composite up 0.5%.
This week's calendar includes an update on US consumer prices, as well as earnings reports from JPMorgan Chase and other leading banks.
Gold stood at USD1,758.25 an ounce at the London equities close, little changed from USD1,759.55 late Friday.
The economic events calendar on Tuesday has UK labour market data at 0700 BST and Germany ZEW survey prints at 1000 BST.
The UK corporate calendar on Tuesday has third-quarter results from gambling firm Entain and a trading statement from transport company Stagecoach Group.
By Arvind Bhunjun; [email protected]
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