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UPDATE 2-Healthcare stocks, recovery optimism push FTSE 100 higher

Published 12/02/2021, 10:29
Updated 12/02/2021, 18:12
UPDATE 2-Healthcare stocks, recovery optimism push FTSE 100 higher
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(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
* UK economy slumps a record 9.9% in 2020
* Vivo Energy rises on upbeat forecast, dividend plans
* FTSE 100 up 0.9%, FTSE 250 adds 0.1%

(Updates to market close)
By Shivani Kumaresan
Feb 12 (Reuters) - London's FTSE 100 rose on Friday,
clocking a second straight weekly rise, led by gains in
healthcare stocks as investors remained optimistic of a
vaccine-led economic recovery even as data showed the UK economy
shrank by a record 9.9% last year.
The blue-chip FTSE 100 index .FTSE rose 0.9%, with
healthcare and financial stocks, mainly AstraZeneca (NASDAQ:AZN) Plc AZN.L ,
GlaxoSmithKline GSK.L and Prudential Plc PRU.L leading
gains.
Oil heavyweights BP BP.L and Royal Dutch Shell RDSa.L
were also among the biggest gainers on the index as oil prices
edged higher. O/R
The mid-cap index .FTMC rose 0.1%.
"Delving into the data for Q4, it was better than we
expected," said Craig Erlam, senior market analyst at OANDA
Europe.
"So there is cause for optimism now, especially against the
backdrop of a very promising vaccine rollout we are seeing in
the UK."
Data showed Britain's GDP grew 1.0% between October and
December, ensuring the economy did not head back towards
recession at the end of 2020. The Bank of England has forecast that the economy will
shrink by 4% in the first three months of 2021 due to the new
lockdown and Brexit-related disruption.
Vaccine optimism and a raft of global stimulus have lifted
the FTSE 100 almost 34% from a virus-induced low in March 2020,
but the index is still about 15% below the highest level of last
year, while its Asian and U.S. peers have scaled record highs.
Office for National Statistics said prevalence of COVID-19
infections in England decreased in the week ended Feb. 6,
equivalent to about one in 80 people. Meanwhile, Junior Home Office Minister Victoria Atkins has
said Britain will set out its roadmap for easing lockdown
restrictions on Feb. 22. Fuel retailer Vivo Energy VVO.L rose 5.8% after
forecasting full-year core earnings above the top end of a
market estimate and announced a dividend for 2020.
Holiday company Jet2 JET2.L fell 7.2% as it raised 422
million pounds ($582 million) through a new share issue,
equivalent to 20% of its share capital prior to the fund
raising.

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