By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Oil firms led U.K. stocks higher on
Friday after HSBC initiated coverage of several energy giants with
overweight ratings, while the broader benchmark index recovered
after a five-day losing streak after better-than-expected U.S. jobs
data.
The FTSE 100 index rose 0.8% to close at 6,551.99, after closing
at the lowest level since mid-October on Thursday. On the week, the
index lost 1.5%.
Shares of Royal Dutch Shell PLC (RDSB) climbed 2.9% after HSBC
initiated coverage of the oil major with an overweight rating. HSBC
also started coverage of BP PLC (BP), 0.5% higher, and BG Group PLC
, up 1.1%, with overweight ratings.
The analysts said the sector remains out of favor with
investors, but that the companies' robust underlying cash flows
aren't being recognized. Oil prices were higher.
The London index moved a notch higher in afternoon trade after
U.S. jobs data showed that the labor market in the world's largest
economy is improving. The unemployment rate fell to 7% in November
from 7.3% in October and the nonfarm-payrolls report showed 203,000
new jobs were added to the economy, with both figures beating
analyst estimates.
Among other movers in London, shares of Lloyds Banking Group PLC
(LYG) gained 1.4% after the bank said it has sold a portfolio of
nonperforming Irish retail mortgages for 257 million pounds ($420.4
million) in cash.
Vodafone Group PLC (VOD) put on 2.1% after Berenberg lifted the
telecom firm to buy from hold and Exane BNP Paribas upgraded it to
neutral from underperform.
Pennon Group PLC picked up 1.1% after Barclays upped the
water-utility firm to overweight from equal weight.
And also on the ratings theme, Wm Morrison Supermarkets PLC
closed 0.9% higher after Citigroup lifted the company to neutral
from sell.
Outside the main index, Domino's Pizza Group PLC slid 9.3% after
Chief Executive Lance Batchelor quit to take up a role at a
"significant private-equity backed company."
More must-reads from MarketWatch:
European stocks break five-day losing streak
Jobs, market breadth and the data that screams more gains in
2014
3 low-risk stocks for market skeptics
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