FTSE 100 closes higher but held back by energy sector losses

  • 8/9/2021
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Aug 9 (Reuters) - Steep losses in energy stocks held back gains in London"s blue-chip index on Monday, as oil prices slumped on concerns over rising COVID-19 cases, while financial services group Hargreaves Lansdown plummeted on weak earnings. Britain"s biggest fund supermarket Hargreaves Lansdown (HRGV.L) tumbled 11.3% and was the biggest faller in the FTSE 100 after it missed profit estimates, even though it attracted record numbers of new clients on the back of rising retail participation. read more The FTSE 100 index (.FTSE) ended 0.1% higher on gains in defensive sectors, including consumer staples and healthcare, while mining stocks recovered from early losses. Energy companies weighed the moston the index, with Royal Dutch Shell(RDSa.L) and BP (BP.L) falling 0.8% and 0.7%, respectively. Oil prices slumped around 4% as rising COVID-19 cases, particularly in China, prompted concerns over new curbs on activity, which could hurt demand for oil. "The drop seems to be a short-term blip rather than a market-wide worry as support for commodities still seems to be unshaken," said David Madden, an analyst at Equiti Capital. The mid-cap index (.FTMC) ended flat. Global recruiter PageGroup (PAGE.L)was among the worst performers in the index, falling 3.2% after its first-half profit fell below 2019 levels. The FTSE 100 index has gained nearly 10% so far this year but has largely lagged U.S. and European peers, hurt by a resurgence in COVID-19 infections and inflation fears outweighing optimism around robust corporate earnings. As the UK economy re-opens, the market knows higher inflation will not be an issue as long as it is in tandem with economic growth, Madden said. Among other stocks, Vecture (VEC.L) gained 5.5% after tobacco company Philip Morris (PM.N) raised its bid for the drugmaker to 165 pence ($2.29) per share. Deliveroo (ROO.L) surged 4.5% after its German rival Delivery Hero (DHER.DE) took a 5.09% stake in the British food delivery company. read more Reporting by Shashank Nayar and Ambar Warrick in Bengaluru; Editing by Subhranshu Sahu, Ramakrishnan M. and Jane Merriman Our Standards: The Thomson Reuters Trust Principles.

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