Economic news

UK's FTSE 100 Hits more than 1-Week High on Energy Boost

  • AstraZeneca drug reduces lung cancer death risk, shares rise
  • Indivior jumps on U.S. Suboxone lawsuit settlement
  • ASOS shares soar on report of $1.2 bln takeover deal
  • FTSE 100 up 0.6%, FTSE 250 adds 0.7%

June 5 (Reuters) - UK's FTSE indexes rose on Monday to more than one-week highs, boosted by energy stocks after top oil exporter Saudi Arabia pledged to cut supplies, while ASOS looked set to post its best day in nearly five months following a takeover offer.

The resources-heavy FTSE 100 climbed 0.6%, hitting its highest since May 24. Energy stocks jumped 1.2% as oil prices advanced on Saudi Arabia's plan to deepen output cuts from July.

The mid-cap FTSE 250 rose 0.7% to hit its highest since May 23, aided by a 13.2% surge in ASOS PLC after a report said Alibaba- backed Turkish retailer Trendyol made a 1 billion pound ($1.24 bln) takeover bid for the company. ASOS also helped the broader retail sector climb 0.6%.

"If you look at the market cap of ASOS, it stands at less than 500 million pounds, and the deal values ASOS more than double its current price," said Christopher Peters, trading floor manager at Accendo Markets.

"From an investor point of view, if the bid is as big as it seems, it is exciting," said Peters, adding that the deal was speculation at the moment.

UK-listed shares of Indivior Plc surged 9.8% after the U.S. drugmaker said it had agreed to settle a lawsuit accusing it of illegally suppressing generic competition for its opioid addiction treatment Suboxone.

Following a disappointing end to May, UK equities have slowly recovered as investors look past uncertainties surrounding the U.S. debt deal and remain hopeful that central banks around the globe could hit pause on monetary tightening starting with the Federal Reserve.

AstraZeneca Plc added 0.4% after trial data showed its therapy Tagrisso cut the risk of death by more than half in patients with a type of lung cancer.

The broader telecommunications sector rose 2.5%, rebounding from its May low after a report said Inc  was negotiating to get the low-cost wireless services for its Prime members.

Reporting by Johann M Cherian in Bengaluru; Editing by Subhranshu Sahu

Source: Reuters

To leave a comment you must or Join us

More news

Back to economic news list

By visiting our website and services, you agree to the conditions of use of cookies. Learn more
I agree