Worldwide Lodges Group climbs as Jefferies says time to purchase leisure, whereas Vivo Power soars on buyout
UK stocks struggled just above the flat line on Thursday, aided by gains from International Hotel Group and Mitchells & Butlers after positive analyst news, while Vivo Energy stocks soared on news of a $ 2.3 billion acquisition shot.
The FTSE 100 Index UKX, + 0.17%, rose 0.1% to 7,293, but has gained almost 1% in the week to date, contrary to a weaker trend in the European indices. The pound GBPUSD, -0.13%, was stable at $ 1.3325.
On the downside were commodity stocks, with energy giant Royal Dutch Shell RDSA, -0.79% RDS.A, +0.36% falling 0.8% while miners Rio Tinto RIO, -0.14% RIO, – 0.59% and Glencore GLEN, -0.69% each fell 1%.
Oil prices CL00, -0.26% BRN00, -0.04% finished slightly lower on Wednesday as US inventories rose and traders awaited a response from OPEC and its allies for a release of US reserves earlier this week .
U.S. markets will be closed on Thursday for the Thanksgiving Day holiday and will reopen on Friday for a shortened session.
International Hotels Group IHG, -0.58% IHG, + 3.04% led the FTSE 100 winners, up 2.7% after a double upgrade to buy from analysts at Jefferies, where a team is taking led by James Wheatcroft predicted that the backlog will lead to more investors paying attention to leisure. “Encouraging data puts the focus on hotels for 2022,” he said, adding that it remains positive in the gambling sector as well.
In addition, the analysts expect that “cheap, easily accessible leisure activities such as pubs, restaurants, cinemas and caterers will recover quickly when the environment normalizes, supported by market share gains. White bread WTB, + 1.98%,
Cineworld CINE, -1.19% and JD Wetherspoon JDW, -0.27%,
Mitchells & Butlers MAB, + 3.22%, are all valued for purchase at Jefferies.
Mitchell & Butlers stock was up 4% and Whitbread was up 2%. Cineworld shares lost 1% and JD Wetherspoon was unchanged. The group also increased Melia Hotels International MEL, + 4.84% in Spain for purchase, and those stocks rose 4.6%.
For the FTSE 250 MCX + 0.24%,
Shares in Vivo Energy VVO, + 19.39%, rose nearly 20% after the Africa-focused fuel and lubricants retailer and distributor acquired a 2.3 billion independent energy marketing and trading company.