UPDATE 2-FTSE 100 near seven-week high on energy, banks boost

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* FTSE 100 up 1.9%, FTSE 250 adds 2.1%
* HSBC beefs up cover for potential loan losses
* Travis Perkins gains even as April sales plunge

(Updates with market closing)
By Devik Jain and Sruthi Shankar
April 28 (Reuters) - UK's FTSE 100 closed at a near
seven-week high on Tuesday, as hopes that major economies will
ease lockdown measures helped investors look past dire quarterly
earnings reports from oil major BP and lender HSBC.
The blue-chip index .FTSE ended 1.9% higher, recovering
more than 20% from mid-March lows as massive economic stimulus
actions and signs that coronavirus outbreak was easing drew
buyers into equity markets. Oil & gas companies .FTNMX0530 gained despite wild swing
in crude prices on Tuesday. O/R BP BP.L , a major player in
the sector, saw its first-quarter profit tumble by two-thirds as
the coronavirus crisis hammered oil demand. However, its shares gained 2.6% as the company kept its
dividend despite warning of exceptional uncertainty.
"Firms with the strongest balance sheets, those that are
also best positioned to resist pressure on dividends, are
already showing signs of relative outperformance," said Matthew
Jennings, investment director of equities at Fidelity
International.
"But the fact remains that dividends are under pressure
globally," Jennings said.
Aside from energy stocks, shares in heavyweights British
American Tobacco BATS.L , Prudential PRU.L , LLoyds Banking
Group LLOY.L and Barclays BARC.L boosted the FTSE 100.
Hammered bank stocks .FTNMX8350 gained even as HSBC
Holdings PLC HSBA.L warned of more earnings pain ahead and its
first-quarter profit nearly halved as it set aside a hefty $3
billion in bad loan provisions due to the pandemic. All eyes this week will be on first-quarter GDP figures for
Europe and the United States and on central bank meetings, with
expectations running high for more stimulus from the European
Central Bank.
Data earlier showed British retailers suffered their biggest
fall in sales since the 2008 financial crisis in the first half
of April as the coronavirus kept shoppers at home and forced
store closures. However, improved risk sentiment globally pushed the
domestically focussed mid-cap index .FTMC up 2.1%, with cinema
operator Cineworld CINE.L surging 17% to the top of the index.
Retailer Marks & Spencer MKS.L rose 3.3% after saying it
had taken steps to strengthen its finances for 18 months to cope
with the impact of the crisis. Housebuilder Barratt Developments BDEV.L jumped 5.3% as it
said it was eligible to access funding under the government's
Covid Corporate Financing Facility (CCFF). Britain's largest distributor of building materials, Travis
Perkins TPK.L , rose 4.5% after saying it had traded well
during the first 2-1/2 months of this year even as the lockdown
stripped two-thirds of its revenue in the first three weeks of
April.