UK shares mark the 3rd consecutive week of gains on optimism of quick economic recovery

UK shares concluded the regular session at close to 3-month highs on Friday. The rising optimism of a fast economic recovery in the United Kingdom after COVID-19 marked the 3^rd consecutive week of gains as investors continued to return to riskier assets.

The blue-chip FTSE 100 index and the domestically focused FTSE 250 were both reported 2.3% up on the daily chart at the end of Friday. On the weekly chart, both indices recorded their best performance in almost 2 months. The FTSE 100, however, is currently around 15% down year to date while the midcap index shows a steeper decline of roughly 17%. Learn more about different stock exchanges and stock indices.

An unexpected increase in the United States non-farm employment also fuelled gains in the UK shares on Friday.

Carnival to delist from the FTSE 100 index

A report on Friday highlighted that a few of the European countries including Spain, Turkey, and Greece are pushing for a UK travel corridor that will enable British tourists to visit without having to face a 14-day quarantine upon returning to the United Kingdom. The report sent a wave of celebration in multiple stocks, including Carnival, EasyJet, and IAG.

In the FTSE-100 listed companies, Carnival (NYSE: CCL) posted the largest intraday gain of 19.8% on Friday. The index is set to delist from the blue-chip index later in June.

British stocks have been on the rise since PM Johnson’s government announced plans of easing Coronavirus restrictions around two weeks ago that will enable several retailers to reopen stores for the public in June.

In terms of weekly performance, Hammerson (LON: HMSO) took the lead with an unparalleled 86% increase after the shopping centre operator expressed confidence that its key locations will reopen in the UK from 15^th June.

Premier Oil to fund BP deal via a stock issue

As businesses return to work, supporting economic recovery and inviting investors back to the financial markets, the FTSE 100 index is now only 15% down as compared to its record-high in January.

Taylor Wimpey also said on Friday that the UK’s housing market is showing early signs of recovery. The housebuilder climbed roughly 1.7% on the optimism on Friday.

Premier Oil showed robust performance on Friday with a 25.2% intraday gain. The oil major said it will issue 82.2 million new shares (8.91% of the company) to activist investor ARCM at a discounted price of 26.69 pence per share to fund its agreement with BP that is selling its North Sea assets to Premier Oil.