Vaccine hopes propel London shares; Primark owner jumps

London shares rose on Thursday, bolstered by signs of progress in developing a vaccine for the novel coronavirus, while Primark-owner Associated British Foods jumped after issuing an upbeat trading update.

London shares rose on Thursday, bolstered by signs of progress in developing a vaccine for the novel coronavirus, while Primark-owner Associated British Foods jumped after issuing an upbeat trading update. AB Foods surged 7.4% to the top of the FTSE 100 as it said trading in the Primark fashion stores that had reopened from a coronavirus-led lockdown had been "reassuring and encouraging".

The blue-chip FTSE 100 was up 0.7% and the mid-cap FTSE 250 0.8%, tracking strength in Asia, as a COVID-19 vaccine from Pfizer and Germany's BioNTech was found to be well tolerated in early-stage human trials. Travel-related stocks, including British Airways-owner IAG and EasyJet, were among the biggest gainers as a report said the British government will end quarantine rules for those arriving from 75 countries so that people can go on holiday.

But cardboard maker DS Smith slumped 7.3% after saying it was too early to resume dividends in the short-term due to market uncertainty caused by the pandemic, even as it reported a 5% jump in annual profit.