London midday: Stocks dip into the red in quiet trade

(Sharecast News) - London stocks had dipped into the red by midday on Monday in quiet trade, at the start of a shortened trading week. The FTSE 100 was down 0.1% at 7,579.21, having opened a little higher as sentiment was boosted by China's plans to lift Covid restrictions.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said worries about global growth have eased and hopes have lifted that China's worst Covid woes may be over.

"There was a ripple of relief across European markets after authorities in Shanghai announced a lifting of restrictions from Wednesday, with more production now expected to begin across the manufacturing and tech hub," she said. "Stimulus measures to kick start Shanghai's economy are also helping to lift sentiment, with hopes that they could help revive corporate and consumer spending."

Despite the relief, stocks had drifted just below the flatline by midday, with volumes thinner than usual due to the upcoming long weekend - markets in the UK will be closed on Thursday and Friday for the Platinum Jubilee bank holiday - and with US markets set to be closed on Monday for Memorial day. .

In equity markets, JD Sports was the top gainer on the FTSE 100, having tumbled a week earlier after it surprised markets with news that chair Peter Cowgill was leaving.

Countryside Partnerships surged to the top of the FTSE 250 after San Francisco-based Inclusive Capital said it was looking to make a £1.47bn bid, but accused the company of refusing to engage with it. In-Cap, which holds a 9.2% stake in Countryside, said the possible offer was to buy the remaining shares in the house builder it does not already own for 295 pence each.

Russ Mould, investment director at AJ Bell, said: "The bid is testament to the appeal of the UK housebuilding sector which, regardless of the economic backdrop, should benefit in the long term from supportive supply and demand dynamics."

Elsewhere, IMI gained as the specialist engineer said it planned to buy Germany's Bahr Modultechnik Holding GmbH for an enterprise value of €98m (£83m).

Market Movers

FTSE 100 (UKX) 7,579.21 -0.08% FTSE 250 (MCX) 20,528.91 0.77% techMARK (TASX) 4,449.36 0.08%

FTSE 100 - Risers

JD Sports Fashion (JD.) 125.40p 4.54% Melrose Industries (MRO) 134.40p 4.19% International Consolidated Airlines Group SA (CDI) (IAG) 135.54p 3.88% Scottish Mortgage Inv Trust (SMT) 822.40p 3.47% Ocado Group (OCDO) 928.40p 3.00% RS Group (RS1) 960.00p 2.95% Spirax-Sarco Engineering (SPX) 10,840.00p 2.60% Auto Trader Group (AUTO) 591.60p 2.57% Rolls-Royce Holdings (RR.) 89.12p 2.54% Ashtead Group (AHT) 4,216.00p 2.33%

FTSE 100 - Fallers

Airtel Africa (AAF) 152.70p -4.50% AstraZeneca (AZN) 10,416.00p -1.55% Aviva (AV.) 434.10p -1.54% DCC (CDI) (DCC) 5,534.00p -1.46% Shell (SHEL) 2,348.50p -1.32% British American Tobacco (BATS) 3,504.50p -1.30% Harbour Energy (HBR) 377.40p -1.23% London Stock Exchange Group (LSEG) 7,470.00p -1.16% Imperial Brands (IMB) 1,779.00p -1.00% HSBC Holdings (HSBA) 527.30p -0.96%

FTSE 250 - Risers

Countryside Partnerships (CSP) 291.80p 22.30% Aston Martin Lagonda Global Holdings (AML) 724.60p 6.06% Baillie Gifford US Growth Trust (USA) 175.60p 5.40% Chrysalis Investments Limited NPV (CHRY) 137.20p 5.38% TUI AG Reg Shs (DI) (TUI) 197.45p 5.08% Carnival (CCL) 1,030.00p 4.42% AJ Bell (AJB) 282.80p 4.35% Dr. Martens (DOCS) 218.20p 4.30% European Opportunities Trust (EOT) 759.00p 4.12% Trustpilot Group (TRST) 106.80p 3.79%

FTSE 250 - Fallers

FirstGroup (FGP) 129.50p -3.65% Wood Group (John) (WG.) 244.50p -2.32% Hochschild Mining (HOC) 112.90p -2.08% Just Group (JUST) 81.50p -1.87% Mediclinic International (MDC) 379.40p -1.76% Petrofac Ltd. (PFC) 145.30p -1.69% QinetiQ Group (QQ.) 363.00p -1.63% Helios Towers (HTWS) 115.10p -1.62% Ninety One (N91) 230.80p -1.62% NB Private Equity Partners Ltd. (NBPE) 1,525.00p -1.61%