Monday, December 6, 2021

London Markets: International Hotels Group climbs as Jefferies says time to buy leisure, while Vivo Energy soars on buyout

Weighing on the downside were resource stocks, with energy giant Royal Dutch Shell NL:RDSA RDS fell 0.8%, while miners Rio Tinto RIO UK:RIO and Glencore UK:GLEN fell 1% each.

Oil prices CL00 BRN00 finished slightly lower on Wednesday as U.S. inventories rose and traders waited for a response from OPEC and its allies to a U.S. reserve release earlier this week.

U.S. markets will be closed Thursday for the Thanksgiving Day holiday, and will reopen on Friday for a shortened session.

International Hotels Group IHG UK:IHG led the FTSE 100 gainers, up 2.7% after a double upgrade to buy from analysts at Jefferies, where a team led by James Wheatcroft predicting pent-up demand will lead to more investor attention on leisure. “Encouraging data puts the focus on hotels for 2022,” he said, adding that they also remain positive on the gaming sector.

As well, the analysts expect “low-ticket, highly accessible leisure activities such as pubs, restaurants , cinemas and caterers to bounceback rapidly as the backdrop normalizes, boosted by market share gains. Whitbread UK:WTB, Cineworld UK:CINE and JD Wetherspoon UK:JDW, Mitchells & Butlers UK:MAB are all rated buy at Jefferies.

Mitchells & Butlers shares rose 4% and Whitbread rose 2%. Cineworld shares slipped 1% and JD Wetherspoon was unchanged. The group also lifted Melia Hotels International ES:MEL in Spain to buy, and those shares rose 4.6%.

On the FTSE 250 UK:MCX, shares of Vivo Energy UK:VVO surged nearly 20% after the Africa-focused retailer and distributor of fuels and lubricants agreed to a $2.3 billion takeover by VIP II Blue B.V., a wholly-owned, indirect subsidiary of Vitol Investment Partnership II Ltd, independent energy marketing and trading company.

source: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-77A0-2E6145DAABDD%7D&siteid=rss&rss=1