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15 Sep, 2020 22:27

Sector movers: Relief rally in Hiscox after High Court ruling, fresh gains for grocers

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A sharp rebound in shares of non-life insurer Hiscox pushed its sector to the top of the leaderboard after the High Court's ruling on so-called Business Interruption costs in the wake of the pandemic.

Although judges partly found in favour of the plaintiff, the Financial Conduct Authority, the estimated cost to Hiscox of roughly £100m was below the company's own prior average estimate of £130m for its UK operations and, according to analysts at ShoreCap, well below the worst case scenario of £250m.

ShoreCap also pointed out how Hiscox's shares had underperformed rival Beazley's by roughly 20%, which while not entirely due to Covid "does suggest that the market was assuming the worst case scenario of losses, and therefore today’s ruling should be a relief."

Shares of grocers were close behind, buoyed by a much stronger than expected third quarter trading update out of Ocado that sent the food retailer's to a fresh high, with improved sentiment towards other grocers also benefiting, especially those with a strong online presence such as Tesco.

In the background, Nielsen reported that sales of fast-moving-consumer-goods had continued to level out over the four weeks ending on 5 September, but rising by a still very strong 5.3%.

Online sales of FMCG were up by 102%, helped by 10% more online shopping trips over the past 12 weeks.

Top performing sectors so far today

Insurance (non-life) 2,960.32 +3.65%

Food & Drug Retailers 4,242.16 +3.61%

General Industrials 5,757.07 +2.78%

Construction & Materials 6,563.13 +2.39%

Technology Hardware & Equipment 2,259.68 +2.32%

Bottom performing sectors so far today

Automobiles & Parts 2,723.86 -1.22%

Leisure Goods 24,991.62 -0.40%

Mobile Telecommunications 2,501.45 -0.32%

Banks 1,962.58 -0.31%

Industrial Transportation 2,080.45 -0.20%

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Important Legal Notice about News Sources

 

Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.