Markets gain on hopes for Covid-19 drug

The London markets closed higher on the back of cautious optimism among traders amid hopes of progress for a Covid-19 treatment.

A warning from ratings agency Moody’s that the UK economy is heading for a 10.1 per cent contraction in 2020 - a situation more severe than any other G20 nation - was still not enough to knock the wave of positivity.

The FTSE 100 closed 45.79 points higher at 6,095.41p at the end of trading.

David Madden, market analyst at CMC Markets UK, said: “Sentiment has been buoyed by hopes for a Covid-19 treatment. A study has found that Remdesivir, an antiviral drug, can reduce the fatality rate in patients by 62 per cent.

“This week the headlines were dominated by stories of record cases in various US states, and policymakers re-imposing lockdown restrictions, so the Remdesivir story has been a nice change of pace.”

Hospitality firms had a strong showing as companies continued to reopen sites, with bar owner Mitchells and Butlers and hotel owner PPHE both jumping towards high in the FTSE 250.

In company news, The Gym Group edged higher after it told investors it lost around one in five of its members during lockdown, even though it froze their payments. Shares moved 0.4p higher to 150.2p. Elsewhere, Wagamama-owner The Restaurant Group slipped after it said that one

in ten of its sites will not reopen before the end of the year. Shares closed 1.2p lower at 52.3p at the close of play. Royal Mail saw shares improve despite being hit with a £1.5 million fine by the communications regulator for failing to deliver first-class mail on time. Ofcom said that Royal Mail missed its target to deliver at least 93 per cent of firstclass post across the UK within one working day of it being collected. Shares closed 1.8p higher at 167.1p.

Boohoo shares tumbled again after Aberdeen Standard Investments, one of the retailer’s largest investors, cut its stake by more than half in response to accusations of poor working conditions. It closed 6.6p lower at 279.5p.

The biggest risers on the FTSE 100 included Barclays, up 5.8p at 117.76p, and Whitbread, up 104p at 2,268p,