Shock slowdown fails to stop FTSE momentum

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A 'shock' slowdown in UK output was not enough to dampen momentum in blue chip stocks on Monday.

Activity among UK businesses declined at the fastest pace in 41 months, according to the latest PMI data. The flash reading fell to 48.5 this month, down from 49.3 in November.

But the market was still buoyed by the lifting of uncertainty from the 'phase one' trade deal between the US and China, and UK Prime Minister Boris Johnson's vow to act swiftly on progressing his Brexit deal.

At 1159, the benchmark FTSE 100 index was up 2.2%, or 162.51 points, to 7,516.95.

LARGE AND MID CAP RISERS AND FALLERS

Sports clothing and equipment retailer Sports Direct surged 27.8% to 460p after it posted a large rise in first-half profit, as acquisitions boosted revenue and it booked a one-off gain on the sale of a distribution centre.

The company also guided for 5-15% growth in underlying operating earnings for the full year.

Cinema chain Cineworld dropped 1.1% to 204p on announcing that it had agreed to another blockbuster deal -- this time to acquire Canadian counterpart Cineplex for about $2.1bn.

The company last year forked out $3.6bn to acquire the Regal cinema chain in the US.

AstraZeneca gained 3% to £74.40, having agreed to sell the rights to its anti-psychotic drugs in Europe and Russia to Cheplapharm for up to $239m.

Rail and bus concern FirstGroup edged 0.25% higher to 118.9p on confirming that it had hired advisors to explore a sale of its North American bus assets.

Water utility Pennon firmed 1.4% to 998p as investors responded positively to a final cost and spending determination from regulatory Ofwat for its South West Water unit, for the period between 2020 and 2025.

Defence contractor group Chemring added 0.75% to 200.5p after it swung to a slightly better-than-expected annual profit, led by its its sensors & information division.

SMALL CAP RISERS AND FALLERS

Engineering contractor Van Elle gained 3.8% to 41p despite guiding that it expected to report a fall in first-half profit, owing to a particularly tough first quarter.

Fulham Shore, the owner of The Real Greek and Franco Manca restaurants, dipped 1.2% to 11.11p as its first-half profit nearly halved as the cost of opening new restaurants offset revenue growth.

Touchstone Exploration surged 48% to 20.35p on announcing that it had made a significant crude oil discovery in Trinidad and Tobago.

Retailing group Studio Retail gained 2.3% to 225p as it agreed to sell education unit Findel Education to Wakefield city council for £50m.