- UK March PMI at 47.9 vs est. 48
- Cineworld slumps on ditching U.S., UK businesses sale
- Airlines slide on higher oil prices
- NCC Group down on brokerage PT cuts
- FTSE 100 up 0.7%, FTSE 250 adds 0.1%
April 3 (Reuters) - UK's FTSE 100 hit a three-week high on Monday, lifted by oil majors as crude prices rallied following a surprise output cut by OPEC+, while Cineworld Group hovered near record lows as it failed to find a buyer for its U.S., UK and Ireland businesses.
Energy heavyweights Shell Plc and BP Plc advanced more than 3% each, as oil prices jumped nearly 6% following an unexpected output cut by the Organization of the Petroleum Exporting Countries and its allies.
The broader energy sector rallied 4.0%, its biggest daily gain in nearly two months.
The export-oriented FTSE 100 rose 0.7%, starting the new quarter higher, as the pound slipped.
The domestically-oriented FTSE 250 was up 0.1%, as of 08:44 GMT.
"The FTSE 100 is leading the charge among European markets, with Shell and BP at the top of the index", after the unexpected move by OPEC+ to boost oil prices, said Victoria Scholar, head of investment at interactive investor.
Lenders, up 2.0%, also lifted the blue-chip FTSE 100.
Cineworld Group Plc plunged 24.1%, hitting its lowest levels since late August, as the cinema operator said it has terminated the sale process for its U.S., UK and Ireland businesses.
Both the FTSE indexes started 2023 stronger on hopes that the global economy would avoid a recession this year but the optimism was put to test in March, following a global banking sector turmoil.
Bucking the trend, NCC Group Plc dropped 7.3% after a string of brokerages cut their price-target levels on the IT services and consulting firm.
Higher oil prices hurt airlines' stocks including Wizz Air Holdings Plc and Easyjet Plc, which shed 3.4% and 0.8%, respectively.
The purchasing managers' index declined further to 47.9 in March. Analysts had estimated it to hold at February levels of 48. Readings below 50 indicate a contraction in activity.
Reporting by Johann M Cherian in Bengaluru; Editing by Sonia Cheema and Rashmi Aich
Source: Reuters