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FTSE 100 movers: IAG flies higher on vaccine hopes; Ocado retreats

By Michele Maatouk

Date: Monday 16 Nov 2020

FTSE 100 movers: IAG flies higher on vaccine hopes; Ocado retreats

(Sharecast News) - London's FTSE 100 was up 1.6% at 6,420.23 in afternoon trade on Monday as investors cheered news that a Covid-19 vaccine by Moderna has been shown to be 95% effective.
British Airways and Iberia parent IAG, engine maker Rolls-Royce, GKN owner Melrose, Premier Inn owner Whitbread and InterContinental all rallied on the news.

On the downside, online supermarket Ocado, pest control company Rentokil, food delivery service Just Eat Takeaway, discount retailer B&M European Value Retail, Dettol maker Reckitt Benckiser and B&Q owner Kingfisher - all of which have benefited from the pandemic - were under the cosh.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: "This is early data and the Moderna vaccine isn't likely to be approved for at least another few weeks but the announcement adds to the confidence washing through the financial markets.

"It's had a dramatic effect on the share price of companies worst hit by the pandemic with British Airways owner IAG up by more than 11% and aircraft engine manufacturer Rolls Royce rising by around 10% on hopes the global travel industry will recover much faster. Premier Inn owner Whitbread also climbed by around 8% and pub chain JD Wetherspoon by more than 5% as investors forecast that the lockdowns depressing trade will now be more limited.

"The pent-up demand for dining out which is forecast to be unleashed when restrictions ease has taken a chunk out of the share price of Just Eat Takeaway and Ocado. Both firms have reaped huge rewards during the pandemic as millions opted to order in deliveries at home but the expectation is that this trend may now be on the wane sooner rather than later."

FTSE 100 - Risers

International Consolidated Airlines Group SA (CDI) (IAG) 161.35p 11.58%
Rolls-Royce Holdings (RR.) 102.65p 9.55%
Whitbread (WTB) 3,019.00p 8.56%
Melrose Industries (MRO) 160.00p 7.67%
Diageo (DGE) 3,087.00p 6.30%
BP (BP.) 251.60p 6.21%
Royal Dutch Shell 'B' (RDSB) 1,184.00p 6.19%
Royal Dutch Shell 'A' (RDSA) 1,236.20p 6.04%
InterContinental Hotels Group (IHG) 4,730.00p 5.65%
British Land Company (BLND) 500.00p 5.35%

FTSE 100 - Fallers

Ocado Group (OCDO) 2,189.00p -4.12%
Rentokil Initial (RTO) 523.80p -3.43%
Just Eat Takeaway.Com N.V. (CDI) (JET) 8,166.00p -2.95%
Flutter Entertainment (FLTR) 13,120.00p -2.60%
B&M European Value Retail S.A. (DI) (BME) 490.40p -2.58%
Reckitt Benckiser Group (RB.) 6,828.00p -2.18%
Avast (AVST) 444.20p -1.94%
SEGRO (SGRO) 908.00p -1.77%
Bunzl (BNZL) 2,400.00p -1.64%
Kingfisher (KGF) 290.10p -1.43%

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