LONDON, Feb 16 ― British stocks rose yesterday, as mining and energy stocks tracked strong gains in commodity prices and investors were hopeful global vaccine rollouts would quicken the economic recovery this year.
The commodity-heavy FTSE 100 was up 2.5 per cent, clocking its best day in over a month, boosted by miners Anglo American, Rio Tinto and BHP Group and oil producers BP and Royal Dutch Shell.
“Government attempts to manage expectations on Covid-19 better are helpful to the market which is now probably pleasantly surprised at just how quickly the UK has vaccinated the most vulnerable sections of its population,” said Russ Mould, investment director at AJ Bell.
“This is making it easier for investors to look through to a reopening of the economy even if the pace at which restrictions are eased remains a topic of fierce debate.”
The FTSE 100 has recovered nearly 34 per cent from its March 2020 lows, led by a raft of stimulus measures, but a surge in infections and recent widespread lockdowns have slowed economic growth. The index has also lagged its US and European peers.
England's new Covid-19 hotel quarantine system for arrivals from high-risk countries is running smoothly after it was introduced earlier in the day, the health minister said.
British Prime Minister Boris Johnson said he would plot a “cautious but irreversible” path out of the Covid-19 lockdown, after the vaccination of 15 million people so far in Britain.
The mid-cap FTSE 250 index added 1.8 per cent, reaching over 11 month high, with travel group TUI AG gaining the most.The wider travel and leisure sub-index gained 4.3 per cent.
Britain's housebuilding sector gained 2.1 per cent as a survey showed asking prices for homes unexpectedly rose in January and early February.
In company news, Rolls-Royce rose 3.5 per cent after appointing Panos Kakoullis, the former head of Deloitte's audit and assurance practice, as its new chief financial officer.
Pub operator Mitchells & Butlers jumped 7.9 per cent, after plans to raise £350 million (RM1.96 billion) through an open offer of shares. ― Reuters
