International Hotels Group climbs as Jefferies says time to buy leisure, while Vivo Energy soars on buyout

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UK shares struggled above the flat line on Thursday, supported by gains for International Hotel Group and Michels & Butler after a positive analyst note, while shares of Vivo Energy reported a $2.3 billion acquisition.

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ftse 100 index ukx,
+0.18%
It rose 0.1% to 7,293, but has gained nearly 1% so far for the week, marking a weak trend in European indices. Pound GBPUSD,
-0.08%
was stable at $1.3325.

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Resource stocks were on the downside with energy giant Royal Dutch Shell RDSA,
-0.79%

rds.a,
+0.36%
Miners Rio Tinto Rio fell 0.8%, while
-0.14%

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rio,
-0.54%
and Glencore Glen,
-0.71%
Each fell 1%.

oil prices CL00,
-0.27%

BRN00,
-0.02%
Wednesday ended slightly lower as US inventories rose and traders await a response from OPEC and its allies on a US reserve release earlier this week.

US markets will be closed on Thursday for the Thanksgiving Day holiday, and will reopen for a short session on Friday.

International Hotel Group IHG,
-0.58%

ihg,
+2.91%
Buying from analysts at Jefferies led FTSE 100 gainers up 2.7% after a double upgrade, with a team led by James Wheatcroft predicting an increase in demand drew more investor attention on the holiday. “Encouraging data puts the focus on hotels for 2022,” he said, adding that he remains positive on the gaming sector as well.

At the same time, analysts expect “a rapid boom in low-ticket, highly accessible leisure activities such as pubs, restaurants, cinemas and caterers, as market share increases background normalizes.” Whitbread WTB,
+1.88%,
Cineworld Cine,
-1.04%
and JD Weatherspoon JDW,
-0.27%,
Michelle and Butler MAB,
+3.22%
All are rated to buy at Jefferies.

Shares of Mitchell & Butler rose 4% and Whitbread 2%. Shares of Cineworld slid 1% and JD Weatherspoon remained unchanged. The group has acquired Melia Hotels International MEL,
+4.37%
to buy in Spain, and those shares rose 4.6%.

On FTSE 250 MCX,
+0.22%,
shares of vivo energy vivo,
+19.39%
An increase of nearly 20% after Africa-focused retailer and distributor of fuels and lubricants agreed to a $2.3 billion acquisition by VIP II Blue BV, wholly owned by Vitol Investment Partnership II Limited, an independent energy marketing and trading company It is an indirect subsidiary company.

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