MARKET REPORT: Retail stocks surge on plan for energy bailout

Stocks across the economy rose amid hopes that a plan to limit energy bills will see the country through the winter.

Prime Minister Liz Truss, appointed by the Queen yesterday, is finalizing a support package for homes and businesses that could cost an estimated £140bn.

Shares across the retail sector rose amid hopes the cap will allow shoppers to spend more money on the High Street rather than see most of their cash gobbled up by rising energy costs.

Spending boost? Shares across the retail sector rose amid hopes the energy price cap will allow shoppers to spend more money on the High Street.

Fashion chain Next jumped 2.5%, or 152p, to 6,188p, supermarket group Ocado jumped 2.1%, or 15.2p, to 734.8p, ​​Sainsbury’s added 2.4%, or 4 .9p to 209.9p and Tesco rose 2.5%. or 6.3p, at 255.9p.

Online retailer Asos was up 2.1 percent, or 14 pence, at 681 pence. Rival Boohoo rose 3 percent, or 1.28 pence, to 44.45 pence, Kingfisher, owner of B&Q, rose 2.8 percent, or 6.7 pence, to 246.3 pence and AB Foods, owner of Primark, rebounded 2.2 percent, or 32.5 pence, to 1,509.5 p.

Food and drink sellers also got a boost with Wetherspoons rising 4.6 percent, or 22.4 pence, to 511 pence, Mitchells & Butlers rising 7.4 percent, or 11.3 pence, to 164, 9 pence, Greggs adding 7.1 percent, or 131 pence, to 1,973 pence and Domino’s Pizza up 6.4 percent, or 14.8 pence, to 245.6 pence.

Hargreaves Lansdown analyst Susannah Streeter said investors in the retail sector were “assessing” whether the incoming government’s plans could help “alleviate the cost of living crisis” and “put more money back in the pockets of their customers.” “.

There will also be hope among businesses that they can get help offsetting their own crippling energy bills, which are currently not covered by a price cap like homes.

The wave of optimism managed to lift the FTSE 100, which rose 0.2 percent, or 13.01 points, to 7,300.44.

The oil giants partially capped the index in early trading as a drop in crude prices sent shares of Shell down 1.7 percent, or 39.5 pence, to 2,308.5 pence and those of BP down 2.3 percent, or 10.65 pence, to 452.7 pence.

Stock Clock – Wynnstay

Shares of Wynnstay rose yesterday after it raised its full-year forecast.

The farm supply group said that due to good weather, the 2022 harvest started early, giving it “much greater visibility” into its performance for the fourth quarter. The company was also boosted by the rising price of the fertilizers it produces.

Results for the year to the end of October would be “significantly ahead” of market expectations. The shares rose 4.7 percent, or 27 pence, to 604 pence.

The more domestic-focused FTSE 250 rose 1 percent, or 191.16 points, to 18,820.84.

Meanwhile, banking giant Lloyds was among the biggest gainers, gaining 4.1 percent, or 1.78 pence, at 45.23 pence, after analysts at broker Jefferies raised their price target on shares of 78 pence to 83 pence and said the company was likely to benefit from the Truss government’s ‘pro-growth’ agenda, as well as ‘lower taxes and supply-side reforms’ proposed by Kwasi Kwarteng, who was he hopes that the new prime minister will appoint chancellor.

Analysts also said the support package to offset higher energy bills is likely to generate “renewed interest in UK assets”, while economic support measures could strengthen the pound, helping to mitigate inflation.

North Sea-focused EnQuest became the latest oil and gas group to cash in on booming energy prices as its profits more than doubled.

The group reported a pre-tax profit for the six months to the end of June of £158m, up from £42m in the same period last year, while revenue rose 82 per cent to £816m. of pounds sterling.

But the shares fell 5.5 percent, or 1.7 pence, to 29.45 pence after it confirmed it would pay taxes this year due to the government’s extraordinary tax on oil and gas profits.

Equipment rental company Ashtead posted a 26 per cent rise in profit to £514m in the three months to the end of July following strong demand in its core markets.

However, the company also noted that “increasing interest costs” had prevented it from beating its previous earnings forecasts. The shares fell 2.4 percent, or 105 pence, to 4,207 pence.

Packaging group DS Smith rose 3.4 percent, or 9 pence, to 272 pence after highlighting “strong earnings growth” over the past four months as its efficiency measures managed to offset a large rise in energy prices.

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