Kingfisher logo

KGF - Kingfisher News Story

211.1p 1.2  0.6%

Last Trade - 11:01am

Consumer Cyclicals
Large Cap
Market Cap £4.43bn
Enterprise Value £6.83bn
Revenue £11.60bn
Position in Universe 186th / 1845

UPDATE 3-Brexit deal hysteria sparks dramatic gains for UK stocks

Fri 11th October, 2019 9:07am
* FTSE 250 up 4.2%, FTSE 100 up 0.8% * Brexit deal hopes lift sterling, housebuilders, banks * Midcaps mark best day since 2010 * Sino-U.S. talks also support wider sentiment (Adds company news items, graphic, changes analyst comments, updates share moves) By Muvija M and Shashwat Awasthi Oct 11 (Reuters) - London-listed companies with exposure to the domestic economy soared on Friday for their best day in nearly a decade as hopes that Britain can seal a Brexit deal triggered explosive gains and a major reversal of fortunes for the much-shunned UK market. Investors pounced on everything from banks like RBS RBS.L to housebuilders and retailers such as Kingfisher KGF.L , which owns DIY chain B&Q, after British Prime Minister Boris Johnson and his Irish counterpart, Leo Varadkar, said they had found "a pathway" to a possible Brexit deal.*:nL5N26W1AA The buying spree targeted some of the market's most beaten-down stocks and those considered most vulnerable to a downturn in consumer spending if the country crashes out of the European Union without a deal. The FTSE 250 .FTMC surged 4.2%, while the Dublin bourse .ISEQ , often considered a barometer of Brexit sentiment, jumped 3.7% to its highest since May. The blue-chips .FTSE , however, added a modest 0.8% in comparison as a rally in sterling triggered by Ireland's optimism of Britain leaving the European Union in an orderly fashion hit the dollar-earning constituents of the index. The JP Morgan index that follows UK-listed companies making their money at home .JPDEUKDM soared nearly 8% on its best day since the basket was created nearly three years ago. Four of the so-called UK "big banks", namely RBS RBS.L , Lloyds LLOY.L , HSBC HSBA.L and Barclays BARC.L , together added roughly 12 billion pounds to their combined market cap with rises of between 2% and 12.3%. Housebuilders Persimmon PSN.L , Barratt BDEV.L , Berkeley BKGH.L and Taylor Wimpey TW.L , whose businesses are heavily reliant on the health of the UK economy, jumped between 8.8%-12%. After nearly three years of chaotic negotiations, signs that a divorce deal could finally be nailed down were enough to push London-listed companies with exposure to the domestic economy to a premium over the FTSE 100 .FTSE for the first time since Theresa May stepped down as Prime Minister.*:nL5N26W24I The explosive gains in UK stocks come despite Johnson offering little details on the terms of a divorce deal, highlighting desperation among traders to cling to any signs of a positive development. "The chances of a deal seem to have improved... but hurdles still remain. Time to thrash out the details of the deal are tight, and then there is the question of parliamentary approval," UBS economist Dean A. Turner said. British lawmakers had defeated former PM May's Brexit plans three times before she finally gave up and stepped down. The broader sentiment was also upbeat after U.S. President Donald Trump stirred hopes of a trade agreement with China, calling the first day of talks "very good". "We're enjoying a much more uplifting end to the week as traders see cause for optimism in the two painful negotiations that have gripped markets in recent years," Oanda analyst Craig Erlam said. The FTSE had confirmed a "Death Cross" pattern in the previous session as its 50-day moving average (DMA) crossed below the 200 DMA, a technical pattern usually seen as a warning that more losses are likely in the near term. A notable blemish on the main index was a 4% drop in ad firm WPP WPP.L after French rival Publicis PUBP.PA cut its sales view for the second time. Luxury brand Burberry BRBY.L , which advanced in the previous session on a positive read-across from LVMH LVMH.PA , slipped 2.1% after German rival Hugo Boss BOSSn.DE cut its annual forecast.*:nL5N26V5SH*:nL5N26V622 AIM-listed Dart Group DTG.L surged 17% after the owner of British airline and tour operator Jet2 raised its annual profit view and said it had seen stronger demand for some products since Thomas Cook collapsed.*:nL3N26W1KB Friday's recovery helped the FTSE 100 notch its best weekly performance since late August, after it suffered its steepest weekly fall earlier this month due to escalating U.S.-China trade tensions and recession fears. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ FTSE 250 vs FTSE 100 ftse 250 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Shashwat Awasthi and Muvija M in Bengaluru, Josephine Mason in London, additional reporting by Indranil Sarkar and Thyagaraju Adinarayan; Editing by Bernard Orr, Gareth Jones and Nick Macfie) ((; within UK: +1 646 223 3403; outside UK: +91 80 61822606, +91 80 37962606;)) (( For related prices, Reuters users may click on - * UK stock report .L FTSE index: 0#.FTS6 techMARK 100 index: .FTT1X FTSE futures: 0#FFI: Gilt futures: 0#FLG: Smallcap index: .FTSC FTSE 250 index: .FTMC FTSE 350 index: .FTLC Market digest: .AD.L Top 10 by vol: .AV.L Top price gainers: .NG.L Top % gainers: .PG.L Top price losers: .NL.L Top % losers: .PL.L * For related news, click on - * UK hot stocks: [HOT and GB] Wall Street: .N Gilts report: GB/ Euro bond report GVD/EUR Pan European stock report: .EU Tokyo stocks: .T HK stocks: .HK Sterling report: GBP/ Dollar report: USD/ * For company prices, click on - * Company directory: UKEQ By sector: FTAX * For pan-European market data, click on - * European Equities speed guide................ EUR/EQUITY FTSE Eurotop 300 index........................... .FTEU3 DJ STOXX index................................... .STOXX Top 10 STOXX sectors........................ .PGL.STOXXS Top 10 EUROSTOXX sectors................... .PGL.STOXXES Top 10 Eurotop 300 sectors.................. .PGL.FTEU3S Top 25 European pct gainers.................... .PG.PEUR Top 25 European pct losers..................... .PL.PEUR ))
© Stockopedia 2019, Thomson Reuters, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.