The FTSE 100 finished higher on Monday in a relatively quiet day following some of the volatility seen during the last few weeks.
Reopening optimism offset a drag from inflation-related fears giving the benchmark FTSE 100 index a 0.5% lift to close at 7,051.59. The more domestically-focused FTSE 250 also made ground, adding 0.4% to 22,483.73.
The FTSE 100 traded higher despite miners’ share prices being pulled down by falling iron ore prices as Chinese authorities warn of ‘excessive speculation’, while oil traded at a 5-day high and cryptocurrencies remained under pressure amid a crackdown in China.
Brent crude futures posted solid gains as some doubts crept in about the expected Iran nuclear deal. A note from Goldman Sachs said it expected Brent to reach $80 by the end of Q4, even if Iran is able to ramp up production and add to global oil supply.
Cryptocurrencies staged a rebound after suffering another dramatic weekend drop. The Chinese crackdown was cited as a reason for Bitcoin to drop back towards $32,000 on Sunday but prices have staged a rebound on Monday towards $38,000.
Ethereum, which had fallen to a two-month low on Sunday, managed to reclaim $2,400 although still remains around 40% from its all-time high hit earlier in May.
CINEWORLD OPTMISM
Cineworld (CINE), the cinema operator, rallied almost 4% to 89.6p after reporting a ‘strong’ reopening weekend in the UK, led by the success of Peter Rabbit 2: The Runaway.
‘This weekend’s performance went beyond our expectations as customers were eager to return to the movies and enjoy the full movie experience, including the traditional popcorn which led to strong concession income,’ enthused the company.
‘With the releases next week of Cruella, and A Quiet Place 2, we expect next weekend’s results to be strong,’ added CEO Mooky Greidinger. ‘When combined with improving consumer confidence and the success of the vaccination rollout, we expect a good recovery in attendance over the coming months.’
Digital transition company Kainos (KNOS) reversed earlier gains on profit taking following impressive full year results and a positive outlook statement.
Results for the year to March 2021 came in at the high end of consensus expectations, with pre-tax profit more than doubling to £50.3 million as revenue increased 31% to £234.7 million.
And confident Kainos confirmed a robust pipeline and significant contracted backlog of orders, citing significant programmes in partnership with the UK government and with leading commercial and healthcare clients. The shares fell nearly 2% to £13.87.
Hilton Food (HFG) nudged modestly ahead at £12.34 as the meat and fish packing play served up another tasty trading update, with performance for the first four and half months of 2021 said to be ‘in line’ with the board’s expectations following a strong start to the year.
Oil and gas company Energean (ENOG) was off 4% at 762.5p, despite boosting production guidance, as investors focused in on a delay to expectations of first gas from its Karish operations following fresh Covid-19 restrictions in Singapore.
IN OTHER NEWS
Housebuilder MJ Gleeson (GLE) gained 1.3% to 874p on news results for the current year to 30 June are expected to be ahead of market expectations with rising home prices offsetting a rise in input costs.
Demand for consented land from large and medium-sized housebuilders has returned to pre-Covid levels, insisted the company.
Quirky British fashion brand Ted Baker (TED) was unchanged at 180p after it pushed back the release of its annual results to 10 June due to auditing delays caused by the pandemic, although the retailer confirmed that its results would be in line with consensus expectations.
Cloudcall (CALL:AIM) rose 3% to 71p as the communications group said the recovery seen in the second half of 2020 has continued into 2021, with sales activity continuing to strengthen across all territories.
Respiratory diseases focused Synairgen (SNG:AIM) jumped 23% to 131.5p after a study showed its inhaled treatment candidate for Covid-19 to be effective against variants of the virus.
Fibrosis and oncology focused Nuformix (NFX) crept a fraction higher to 2.2p as it announced the resignation of chief scientific officer Joanne Holland and non-executive director Karl Keegan.
