GCILondon close: Stocks surge on positive Pfizer vaccine news
(Sharecast News) - London stocks closed well into positive territory on Monday following positive news on the Covid-19 vaccine being developed by Pfizer and BioNTech, as investors cheered Democrat Joe Biden's US presidential election win.
The FTSE 100 ended the session up 4.67% at 6,186.29, and the FTSE 250 was 5.2% firmer at 18,850.36.
Sterling was in a mixed state, last weakening 0.13% against the dollar to $1.3139, while strengthening 0.48% on the euro to €1.1122.
Stocks surged in the middle of the session, on news that the vaccine from Pfizer was shown to have prevented more than 90% of infections in a study of tens of thousands of volunteers.
The findings were based on an interim analysis, conducted after 94 participants contracted the virus.
"This is about the best the news could possibly be for the world and for the United States and for public health," said Pfizer senior vice president William Gruber.
CMC Markets analyst David Madden said the vaccine study was a "major step" in the right direction, but cautioned there was still some way to go before it could receive regulatory approval.
"The Covid-19 crisis is far from resolved, but with the way that some traders have been reacting, one could think the pandemic has been put to bed.
"Markets tend to overreact to the downside and to the upside - which is what we are seeing today."
Also helping to underpin sentiment was Joe Biden's win in the US presidential election, announced over the weekend after a week of tense counting in a number of closely-contested states.
"Joe Biden may still have a host of law-suits from Trump to contend with, yet the risk-on sentiment we are seeing throughout markets highlights a confidence within the trading community that these legal challenges are nothing more than a bid to save face," said IG senior market analyst Joshua Mahony.
"Trump may hope that an extended legal challenge will push the decision into the hands of the Republican-dominated Supreme Court, much like the 2000 election.
"However, while the Gore-Bush election was almost too close to call, the 290-214 [electoral vote] loss for Trump leaves little uncertainty over who has won this time around."
In equity markets, stocks most exposed to the Covid-19 pandemic and related restrictions - namely those in the travel and leisure sectors - flew higher.
Caterer Compass Group was up 20.95%, British Airways parent IAG added 25.48%, engine maker Rolls-Royce gained 8.74%, and Primark owner AB Foods was 18.45% stronger.
Premier Inn owner Whitbread was ahead 16.55%, InterContinental Hotels rose 11.96%, GKN owner Melrose advanced 15.35% and travel operator TUI was 19.53% higher.
Budget airline easyJet rocketed 35.56%, cruise line Carnival steamed 37.93% higher, Cineworld was 40.25% stronger, and central Europe-focussed Wizz Air was 16.35% firmer.
Taylor Wimpey rallied 18.61% as the housebuilder said full-year results would be at the upper end of expectations after better-than-expecting trading in the second half.
Other housebuilders followed suit, with Barratt Developments up 13%, Persimmon rising 6.41%, Berkeley adding 6.49%, Vistry 15.91% stronger, Redrow advancing 15.94%, and Bellway 14.53% higher.
JD Sports Fashion also racked up solid gains, gaining 8.02% after an initiation at 'overweight' by JPMorgan Cazenove, while Royal Mail was boosted 3.36% as Citi upped its price target on the stock.
On the downside, online supermarket Ocado - which has benefited from Covid-related lockdowns - slumped 14.63%, while UDG Healthcare was knocked 3.8% lower by a downgrade at Jefferies.
Market Movers
FTSE 100 (UKX) 6,186.29 4.67%
FTSE 250 (MCX) 18,850.36 5.20%
techMARK (TASX) 3,838.31 2.74%
FTSE 100 - Risers
Rolls-Royce Holdings (RR.) 100.00p 43.76%
International Consolidated Airlines Group SA (CDI) (IAG) 130.10p 25.58%
Informa (INF) 558.00p 22.18%
British Land Company (BLND) 454.00p 21.91%
Compass Group (CPG) 1,371.00p 21.65%
Land Securities Group (LAND) 643.40p 20.60%
Associated British Foods (ABF) 1,977.50p 18.45%
Taylor Wimpey (TW.) 145.85p 18.29%
Prudential (PRU) 1,237.00p 17.87%
Standard Chartered (STAN) 425.20p 16.49%
FTSE 100 - Fallers
Fresnillo (FRES) 1,111.00p -15.34%
Polymetal International (POLY) 1,671.50p -11.26%
Ocado Group (OCDO) 2,290.00p -11.24%
B&M European Value Retail S.A. (DI) (BME) 482.00p -9.84%
Just Eat Takeaway.Com N.V. (CDI) (JET) 8,444.00p -8.94%
Kingfisher (KGF) 280.40p -8.55%
Avast (AVST) 456.80p -7.83%
Reckitt Benckiser Group (RB.) 6,714.00p -5.57%
SEGRO (SGRO) 906.00p -4.90%
Admiral Group (ADM) 2,818.00p -4.28%
FTSE 250 - Risers
SSP Group (SSPG) 283.60p 51.79%
Cineworld Group (CINE) 40.42p 40.25%
Carnival (CCL) 1,229.50p 37.93%
easyJet (EZJ) 722.00p 35.56%
Network International Holdings (NETW) 277.00p 33.95%
WH Smith (SMWH) 1,366.00p 32.75%
Trainline (TRN) 400.20p 31.73%
Meggitt (MGGT) 375.30p 28.26%
Greencore Group (GNC) 115.20p 27.01%
Mitchells & Butlers (MAB) 203.50p 25.77%
FTSE 250 - Fallers
Hochschild Mining (HOC) 225.20p -16.72%
AO World (AO.) 351.00p -11.48%
Centamin (DI) (CEY) 117.75p -10.01%
Gamesys Group (GYS) 1,084.00p -9.67%
Just Eat Takeaway.Com N.V. (CDI) (JET) 8,444.00p -8.94%
Games Workshop Group (GAW) 10,590.00p -7.59%
888 Holdings (888) 249.50p -7.42%
Plus500 Ltd (DI) (PLUS) 1,375.00p -7.31%
Fisher (James) & Sons (FSJ) 755.00p -5.86%
Dechra Pharmaceuticals (DPH) 3,340.00p -5.07%
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