Europe: Consumer stocks help UK shares end harsh week higher
[LONDON] A near 44 per cent surge in bookmaker William Hill on takeover offers lifted consumer stocks on Friday, helping UK shares outperform European peers and end a tumultuous week on a high note.
Without disclosing the value, buyout firm Apollo and US casino operator Caesars Entertainment made offers for the British betting firm, which had a market value of 2.28 billion pounds (S$4 billion) at Thursday's close.
"William Hill had been one of the big gainers since March among UK equities... The news of course has done what bid approaches always do, namely lift the rest of the sector as well," said Chris Beauchamp, chief market analyst at IG.
William Hill's peers GVC, Flutter Entertainment and 888 Holdings rose between 6.8 per cent and 16.7 per cent.
The moves helped London's mid-caps index end up 1.4 per cent in its best day in three weeks.
The blue-chips FTSE 100 index rose 0.3 per cent but losses for miners and oil stocks, which tracked commodity prices lower, and banks, which extended losses to a fourth straight session, kept gains in check.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
But the moves stood out as Europe declined with the pan-European STOXX 600 index closing down 0.1 per cent, while German shares lost 1 per cent.
Fading hopes of an economic recovery, anticipation of severe restrictions in the UK to curb a resurgence in COVID-19 cases and the scaling back of government job support hit sentiment this week. Both UK indexes lost nearly 3 per cent - the worst week in eight for the FTSE 100.
The prospect of Brexit without a trade deal with the European Union also adds to the uncertainty, overshadowing support from past stimulus measures.
Auto makers, miners and insurers were among the biggest laggards. The general retailers index posted weekly gains as retail sales picked up, while a survey on Friday showed consumer confidence in September rose to its highest level since March.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Capital Markets & Currencies
Europe: Stoxx 600 falls on banks drag; tech contains losses on ASMI boost
US: Stocks end flat ahead of key inflation data
Hong Kong spot crypto ETFs to start trading next week
Greenback recovers from PMI slump, yen closes in on 155 per dollar
Hong Kong Stock Exchange bids farewell to first woman chair
Asia stocks rise on Wednesday amid Wall Street rally; STI up 0.6%