London shares end higher as the UK retail sales rebound significantly in May

London-listed stocks were upbeat on Friday as the UK’s Office for National Statistics revealed a 12% increase in retail sales last month. The rebound in May supported expectations of a quick recovery after the Coronavirus pandemic that halted economic activity in recent months. Energy stocks were also hawkish as oil prices topped £32.37 per barrel on Friday.

The UK blue-chip FTSE 100 index opened at 6,224.07 on Friday and closed the regular session about 1.1% up at 6,290.40. On the weekly chart, the commodity heavy index posted a broader increase of about 3%. As per the experts, much of the FTSE 100’s rise on Friday was attributed to the upbeat monthly retail sales report.

FTSE 250 index climbs by 0.8% on Friday

The midcap FTSE 250 index, on the other hand, recorded a comparatively lower gain of 0.8% on Friday. On the weekly chart, however, the midcap index also jumped more than 3%. Shares of the food and beverage companies (.FTNMX3530) contributed the most to the FTSE 250’s gain on Friday, followed by personal goods stocks (.FTNMX2760).

The UK’s benchmark indices are now roughly 20% down as compared to their respective year to date highs. Learn more about the different stock exchanges and stock indices.

OPEC+ supply cut optimism resulted in a 2% increase in British Petroleum (LON: BP) and a 1% increase in Royal Dutch Shell (LON: RDSB) on Friday. On the downside, lenders including Barclays, Lloyds, and Royal Bank of Scotland were dovish on a proposal by Britain’s markets watchdog that advocated a 3-month extension on consumer credit payment holidays to support borrowers.

Other prominent price actions on Friday

Other prominent price actions on Friday included an about 5% decline in Britain’s John Wood Group as the engineering services company estimated a 19% decline in its core earnings in the first half of the current financial year. Wood also forecast an 11% decline in its H1 like-for-like revenue.

Gulf Keystone Petroleum closed roughly 3% down on Friday as the London-listed oil producer announced plans of slashing its workforce by a massive 40%. The company attributed its move to the slump in global oil prices and the ongoing Coronavirus pandemic that have significantly disrupted its activities.

Lastly, Rio Tinto launched an internal review on Friday into Australia cave blasts. The miner has faced severe criticism in recent weeks as it destroyed the two sacred aboriginal caves. Shares of Rio Tino were 2% down on Friday.