Bookies back in the race as equine flu blows over and City has a punt
SHARES in bookmakers galloped ahead today as investors breathed a sigh of relief that racing will recommence after an outbreak of equine flu.
The British Horseracing Authority last night announced a “risk-managed” return — with health security measures in place — to the sport tomorrow.
The update came after meetings were called off last week when a number of horses tested positive for equine influenza. The City took a punt on investing again today, driving shares in FTSE 100 firms Paddy Power Betfair and Ladbrokes-owner GVC up 43.6p to 6408p and 6.25p to 661.25p respectively.
Also on the FTSE 100, Barclays edged up 0.92p to 157.6p. Bloomberg reported that the bank, which has come under pressure from activist investor Ed Bramson calling for a shake-up of the board, may unveil plans to pay out more money to shareholders.
Returning surplus capital could be part of a “cohesive strategy to improve returns,” said Shore Capital’s analyst Gary Greenwood. Jefferies’ Joseph Dickerson added: “Investors should look forward to hearing management’s aspirations around capital return.”
The bank will report earnings on February 21.
Elsewhere on the blue-chip index, the Square Mile was digesting another announcement made after the market closed yesterday evening.
British Airways-owner IAG said it will cap ownership of its shares by non- Europeans at the present 47.5% level to maintain its status as a Europeanowned airline. UK shareholders will not face new restrictions on their holdings, and they will not be treated as non-EU shareholders.
The move comes ahead of Britain’s looming departure from the trading bloc. Carriers no longer majority-owned by EU nationals after Brexit face the threat of losing their right to fly within the area beause of share ownership rules. Under EU regulations, IAG’s airlines must be majority owned and controlled by EU shareholders. Shares in IAG fell 9.8p to 653.8p.
Overall the FTSE 100 had decent gains and rose 25.02 points to 7154.13.
Stockbroker AJ Bell pointed to banks and mining and tobacco firms also helping to drive up the index.
The more UK-focused FTSE 250 was up 32.19 points at 18,863.97.
Elsewhere today, shares in logistics f i r m Wi n c a n to n g a i n e d 3 .0 6 p to 240.06p. The business revealed it has won a five-year contract with HMRC. Wincanton will work with the Government to check inbound shipments into the UK, and provide storage and distribution services.