The UK’s leading stocks eased back from earlier highs but stayed on the front foot into early afternoon trading. London’s benchmark FTSE 100 opened stronger on Monday as Covid-19 vaccine rollout efforts continued to gather momentum in the UK and in major economies, such as the US.
Investors also welcomed impressive growth figures from China and the passage of Joe Biden’s $1.9 trillion stimulus package in the US. This helped the blue-chip benchmark make 0.2% gains at 6,775.44 at lunchtime, although easing back from its earlier 0.45% rise.
PROVIDENT FINANCIAL PLUNGES
In corporate news, subprime lender Provident Financial (PFG) plunged 26% to 193.2p after it revealed UK regulators are investigating its consumer credit division, focusing on the affordability and sustainability of lending practices.
Provident Financial is planning to spend up to $65 million addressing customer complaints in the division, which it warned might be forced into liquidation if the plan is rejected.
Paddy Power Betfair owner Flutter Entertainment (FLTR) rallied 6.5% to £168.25 on excitement surrounding a potential IPO of its US business, FanDuel.
Responding to press speculation, Flutter said it has yet to make a decision on various options related to FanDuel, the US fantasy sports betting market leader.
‘Flutter regularly evaluates its organisational and capital structure to assess how best to position itself to deliver upon the group’s strategy,’ explained the gambling group. ‘Options including the listing in the US of a small shareholding in FanDuel are being considered but no decision has been made at this time.’
Data and analytics company Ascential (ASCL) shed 5.5% to 350.4p after the company reported wider annual losses as pandemic-led disruptions to its events and advisory business hurt revenue and led to asset write-downs.
And bus and train group Stagecoach (SGC) reversed nearly 1% to 97.6p as it expressed disappointment that authorities in Manchester are recommending plans for a bus franchising scheme in the greater Manchester region.
IN OTHER NEWS
Fast-moving consumer products manufacturer Supreme (SUP:AIM) climbed 2% to 194.4p on news it has completed a roll-out of its 88Vape vaping products across McColl’s (MCLS) 1,180 convenience store estate in the UK.
SThree (STEM) gained strength to rally 3.5% higher to 360p after the specialist recruiter reported broadly flat first quarter fee revenue, which was ahead of management’s expectations.
CEO Mark Dorman flagged ‘improved underlying activity across each region of the group during the first quarter. This follows the significant sequential quarterly improvement in the previous half.’
Video game services provider Keywords Studios (KWS:AIM) cheapened 2.3% to £23.48 on news CEO Andrew Day is set to a take temporary leave of absence for health reasons.
During the interim period, Jon Hauck, chief financial officer and Sonia Sedler, chief operating officer, have been appointed as joint interim CEOs and Day is expected to return to his position following a period of recovery.
And the online women’s fashion retailer In The Style (ITS:AIM) jumped nearly 8% on its AIM debut, the shares rising from their 200p issue price to 237p.
