A RALLY by AstraZeneca after a delay in the approval for a rival drug and strong gains by builder Taylor Wimpey helped the FTSE to a positive day yesterday despite tourism stocks falling in the wake of the deadly attacks in Paris on Friday night.
The UK’s blue-chip index closed up 0.46 per cent at 6,146.4.
International Consolidated Airlines (IAG), Easyjet and InterContinental Hotels were among the biggest losers. IAG fell 3.21 per cent to 573.75p per share, while EasyJet was trading 0.73 per cent down at 1,776p per share. InterContinental Hotels was 1.55 per cent lower at 2,470p per share.
Meanwhile, Carnival, the cruise line, was 1.73 per cent down at 3,409.50p per share and TUI traded 3.97 per cent of down at 1,089.50p per share.
It is typical for tourism-based stocks to fall in the wake of an attack due to fears that tourism will fall as people do not wish to travel.
As a result, the morning’s oil price rally didn’t last long as the price for Brent crude dropped by almost three per cent in the evening, to $43.30 – the lowest price for a barrel since early August.
However, mining stocks were on the rise, leading the FTSE 100 into positive terrority. Glencore was up 0.69 per cent at 93.70p per share in mid-afternoon trading.
Meanwhile, BHP Billiton rose 0.43 per cent to 886.90p per share, Fresnillo climbed 0.22 per cent to 674.50p per share. Antofagasta rose by 0.31 per cent to 480.80p per share.
Yet, Anglo American’s share price was down 0.3 per cent to 454.95p per share.
Before trading up, the FTSE 100 followed other European stocks on opening, as well as Asian stocks, which fell due to the shake of the attacks coupled with economic data from Japan which showed the country falling back into recession.
Shares in AstraZeneca rose four per cent after Clovis Oncology said the US Food and Drug Administration had asked for more data on its lung cancer drug, which could delay its approval.
Taylor Wimpey, Britain’s second largest housebuilder, increased 2.74 per cent to 178.55p per share after announcing a positive outlook of the property market.
Defence companies BAE Systems and Rolls-Royce also rose, with the former trading 2.05 per cent up at 462.90p per share and the latter trading 2.14 per cent up at 524.75p