UPDATE 2-UK blue-chips rise with European peers; Royal Mail drags mid caps lower

  • Reuters
  • Stock Market News
UPDATE 2-UK blue-chips rise with European peers; Royal Mail drags mid caps lower
Credit: © Reuters.

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* Royal Mail drops 12.4% after scrapping dividend

* Lender NSF warns of going concern risks

* Travel and leisure stocks hit one-month low

* FTSE 100 up 0.4%, FTSE 250 off 0.2%

* Banks, healthcare, energy boost FTSE 100 (Adds comment, updates to close)

By Susan Mathew

June 25 (Reuters) - London's blue-chip FTSE 100 ended higher on Thursday as banks and energy stocks climbed, while the domestically focused mid-caps index slipped amid worries over the economic damage being wrought by the coronavirus pandemic.

The FTSE 100 .FTSE rose 0.4%, in line with the main European bourses, after the European Central Bank said it will offer euro loans against collateral to central banks outside the euro area to backstop funding markets amid the pandemic. .EU

Banks led gains followed by healthcare stocks, while a rise in oil prices buoyed energy stocks. O/R

The FTSE 250 .FTMC ended 0.2% lower with Royal Mail and pandemic-pressured travel and leisure stocks .FTNMX5750 leading losses.

The postal company RMG.L slipped 12.4% after it reported a 31% fall in profits and scrapped dividend payouts for 2020-2021, while also announcing a restructuring plan that includes 2,000 job cuts. have seen a major focus on the international outlook, with ongoing improvements in the (domestic) COVID trajectory and impending easing of lockdown measures doing little to bolster (UK) stocks," said Joshua Mahony, senior market analyst at IG. sentiment remained fragile, with surging numbers of new coronavirus cases and high levels of jobless claims in the United States signalling a prolonged period of economic distress. MKTS/GLOB

"In particular, domestic travel groups such as Trainline TRNT.L , Go-Ahead Group GOG.L , and National Express NEX.L are seeing sharp downside as doubt creeps in despite the proposed reopening of the UK."

Low-budget airline easyJet EZJ.L shed 9.5% a day after reporting a bigger loss for the first half of the year. Among other decliners, subprime lender NSF NSF.L tumbled 32.2% on flagging risks to its going concern status. is also returning to the UK's trade negotiations following its exit from the European Union. issues (are) a major downward factor for markets going ahead, considering the FTSE 100 is highly export-driven," said Roland Kaloyan, equity strategist at Societe Generale (PA: SOGN ).

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