International Hotels Group climbs as Jefferies says time to buy leisure, while Vivo Energy soars on buyout

UK stocks struggled just above the flat line on Thursday, supported by gains from International Hotel Group and Mitchells & Butlers after a positive analyst rating, while shares of Vivo Energy soared following the announcement of a $ 2.3 billion takeover.

The FTSE 100 UKX index,
+ 0.24%
edged up 0.1% to 7,293, but for the week so far it has gained nearly 1%, countering a weaker trend in European indices. GBPUSD,
-0.09%
was stable at $ 1.3325.

Resources stocks weighed down, with energy giant Royal Dutch Shell RDSA,
-0.77%

RDS.A,
+ 0.36%
fell 0.8%, while Rio Tinto RIO miners,
-0.14%

RIO,
-0.63%
and Glencore GLEN,
-0.67%
fell by 1% each.

CL00 oil price,
-0.19%

BRN00,
+ 0.05%
ended slightly lower on Wednesday as US stocks rose and traders awaited a response from OPEC and its allies to a US reserves release earlier this week.

U.S. markets will be closed Thursday for the Thanksgiving holiday and reopen Friday for a curtailed session.

International Hotels Group IHG,
-0.58%

IHG,
+ 3.20%
led the winners of the FTSE 100, up 2.7% after a double upgrade to buy from analysts at Jefferies, where a team led by James Wheatcroft predicting pent-up demand will draw more investor attention to Hobbies. “Encouraging data puts the focus on hotels for 2022,” he said, adding that they also remained positive on the gaming industry.

Further, analysts expect that “low-cost and highly accessible leisure activities such as pubs, restaurants, cinemas and caterers will rebound rapidly as the environment normalizes, boosted by gains in market shares. Whitbread WTB,
+ 2.08%,
Cineworld CINE,
-2.53%
and JD Wetherspoon JDW,
-0.05%,
Mitchells & Butlers MAB,
+ 3.31%
are all listed buy from Jefferies.

Mitchells & Butlers shares were up 4% and Whitbread 2%. Cineworld shares slipped 1% and JD Wetherspoon was left unchanged. The group also raised Melia Hotels International MEL,
+ 4.97%
in Spain to buy, and these shares rose 4.6%.

On the FTSE 250 MCX,
+ 0.29%,
shares of Vivo Energy VVO,
+ 19.39%
jumped nearly 20% after the Africa-focused fuel and lubricants retailer and distributor agreed to a $ 2.3 billion takeover by VIP II Blue BV, an indirect wholly-owned subsidiary of Vitol Investment Partnership II Ltd, an independent energy marketing and trading company.


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