Travel companies and landlords gain on hopes of end to lockdown

TUESDAY proved a happier day than Monday on London’s top index as investors in companies that have been hit by Covid-19 celebrated the UK’S potential road map out of lockdown.

Travel companies and commercial landlords were among the best performers of the day after the Government unveiled plans which could open to nonessential retail opening up soon, with international travel somewhere in the future.

British Land and Land Securities, as well as smaller peer Hammerson, were boosted by investors looking forward to the opening of shopping centres, said CMC Markets analyst Michael Hewson.

It helped propel the FTSE 100 to a 0.2 per cent rise by the end of the day, up 13.7 points to 6,625.94.

Although international travel is still some way off, British Airways owner IAG and aeroplane engine maker Rolls-royce also saw comfortable gains.

Both easyjet and Tui, travel companies whose Covid-19 worries have seen them ejected from the FTSE 100 into the FTSE 250, registered strong growth.

It helped send the smaller index up by 0.4 per cent, a better performance than the FTSE 100.

“Over the last three days this renewed buoyancy has been evident in anticipation of a possible reopening, and with a set of deadlines to focus on, there is a renewed sense of optimism that we could well see an end point for restrictions which would mark a slow return to some sort of normal,’’ Mr Hewson said.

However, the joys of a potential economic reopening was less evident than it might have been because of losses made by largely digital companies that have thrived through lockdown.

The FTSE’S gain came in the face of a fairly broad international sell-off.

Across the pond, New York’s S&P 500 had lost 0.9 per cent as markets closed in Europe, while the Dow Jones dropped 0.6 per cent.

Germany’s Dax fell 0.7 per cent, while only the Cac in Paris joined the FTSE to buck the trend, registering a 0.2 per cent rise.

On currency markets, the pound rose 0.2 per cent to buy 1.4092 US dollars and gained 0.3 per cent to buy 1.1604 euros.

The biggest risers on the FTSE 100 were British Land, up 25.8p at 501.2p; Land Securities, up 27.9p at 655.5p; Pennon Group, up 31.4p at 899.2p; Informa, up 18.6p at 555.2p; and Barclays, up 4.92p at 159.18p.

The biggest fallers on the FTSE 100 were Scottish Mortgage Investment Trust, down 64p at 1,203p; Pershing Square, down 85p at 2,545p; Polymetal, down 44p at 1,497.5p; Ocado, down 66p at 2,335p; and Avast, down 12.2p at 462.4p.