UK stocks open 1.2% stronger on global recovery optimism

Mon, 13th Jul 2020

UK stocks opened more than 1% higher on Monday as investors continued to bet that ongoing stimulus and an easing of lockdowns will get economies through the Covid-19 crisis, despite rising cases in hotspots including the US. At 0825, the benchmark FTSE 100 index was up 75.49 points, or 1.2%, at 6,170.90. Fashion retailer Quiz dropped 6.0% to 6.34p on announcing that it was investigating claims that workers at a supplier factory in Leicester were being paid below UK minimum wages. Quiz's announcement comes after shares in rival retailer Boohoo were hammered by similar revelations about suppliers in Leicester. On Monday, Boohoo had slid another 13% to 243.48p. Low-cost carrier Wizz Air ascended 1.6% to £33.38, having announced that its new joint venture in Dubai would start operations from the beginning of October. Student accommodation investor Unite added 0.7% to 945.5p after it exchanged contracts to acquire a new 300-bed development site in central Edinburgh, estimated to cost £24m to build. Self storage company Big Yellow rose 1.4% to £10.04, as it too kept the deals flowing, in its case agreeing to acquire a site in London for £18.6m. Paris-based diagnostics group Novacyt jumped 7.0% to 286.2p on announcing that it would post a large rise in first-half revenue following the successful launch of a test kit for Covid-19. Cybersecurity company Corero Network Security gained 3.0% to 8.37p on forecasting revenue to rise 48% in the first half of the year, supported by new business wins. Security solutions group Westminster firmed 11% to 10.62p after it said that it expected to deliver a 'much-improved' financial performance in the first half, on the back of a 24% rise in revenue. Subprime lender Morses Club leapt 9.2% to 55.7p as it launched a remote lending process for new home collect credit customers, allowing access to those customers for the first time since lockdowns began in March. Clean technology company Verditek rallied 9.7% to 11.82p after it won work worth more than €0.2m from Black Tulip Minerals in Peru, marking its first contract win in the mining sector. Nanomaterials developer Nanoco jumped 8.5% to 19.9p, having signed up a US litigation financing specialist as it pursues a patent infringement lawsuit against various Samsung entities. Graphene-based products maker Directa Plus added 2.0% to 75.5p after subsidiary Setcar signed a three-year contract worth about $3m to supply waste management services in Romania. Story provided by StockMarketWire.com

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