Why Are These Stocks Trending - Amigo Holdings, Lloyds, Rolls Royce, BP Plc and Cineworld?

Summary

• FTSE 100 was trading in the green on Tuesday, following the release of IHS Markit and CIPS UK Manufacturing PMI.
• A couple of companies’ stocks were trending.

Leading index of the London stock exchange FTSE-100 was trading at the value of

7,107.18, up by 1.20 per cent as of 12:44 PM GMT+1. The index was trading in the green on Tuesday, following the release of IHS Markit and CIPS UK Manufacturing Purchasing Managers' Index, which was 65.6 in May, as compared to 60.9 in April.

Let us look why a couple of companies were trending:

Amigo Holdings Plc (LON: AMGO)

Amigo Holding plc is in the news today as the company said it had accepted the court’s judgment regarding the scheme of arrangement, which was handed down last week. In a statement, the company said it will not appeal further.

The company is filing for insolvency after the court rejected their rescue plan. Its original offer would have seen a pot of between £15-35 million distributed among the claimants, and a chunk of profits made by the company in the next four years.

The plan was turned down by Justice Wills who ruled that the creditors who wanted the rescue plan did not have the necessary information for the alternatives.

Financial regulator FCA had opposed the scheme highlighting that the rescue plan designed for the company placed too much burden on the customers than the shareholders.

As per the CEO of the company, it would not be possible simultaneously, to satisfy its customer compensation claims and meet the legally binding funding.

Amigo’s shares were trading at GBX 7.75 on 01 June 2021, as of 12:32 PM GMT +1, down by 6.63%.

Lloyds Banking Group Plc (LON: LLOY)

The share price of the leading banking group grabbed everyone’s attention as it rallied more than 65% in the last one year despite the pandemic.

Also read : Lloyds bank resumes dividend payments despite a large plunge in profits

Besides giving excellent returns to its shareholders, the group’s profit increased tremendously in the quarter ending 31 March 2021. As reported by the company, profit before tax stood at £1,768 million for the quarter ending 31 March 2021 compared to £404 million in the same period a year ago.

Lloyd’s shares were trading at GBX 49.58 on 01 June 2021, as of 12:33 PM GMT +1, down by 0.62%.

Rolls Royce Holdings Plc (LON: RR.)

An FTSE-100 constituent Rolls Royce has opened the world’s largest indoor jet engine testbed in its hometown, Derby. It took three years to build this jet bed with around £90 million of investment.

The newly built Testbed 80 comprises the most distinctive and advance technology, making it smarter than any other testbeds. The Testbed 80 aligns with the company’s sustainability plan as this would improve the efficiency of the gas turbine. Rolls-Royce had joined hands with Canada’s MDS Aero Support Corporation for the design and construction of this facility.

Rolls Royce’s shares were trading at GBX 107.98 on 01 June 2021, as of 12:34 PM GMT +1, up by 0.90%. 

BP Plc (LON: BP.)

The British company invested $220 million in the US solar development projects, which is part of its long-term plan to invest in the solar power sector.  With this deal, BP has closed its first independent investment in solar energy long after a gap of four years. In 2017, it bought stake in Lightsource, Europe's largest solar developer. The newly acquired project hold a major portfolio in Texas and the Midwest.

The company’s shares were trading at GBX 313.15 on 01 June 2021, as of 12:39 PM GMT +1, up by 2.29%.

Cineworld Group Plc (LON: CINE)

Last week, Sony’s animated movie Peter Rabbit 2, drove the weekend reopening to the highest level since last year. Overall, box office collections came to more than 7 million pounds compared to 16.6 million pounds for the whole of May 2019.

But as the fear of the Indian variant gripped the nation and the number of coronavirus cases continue to surge in the UK, the shares of Cineworld slumped. The group also reported a loss of £2.2 billion in 2020 as the cinema halls remained closed due to the Covid-19 lockdown.

Cineworld’s shares were trading at GBX 92.20 on 01 June 2021, as of 12:40 PM GMT +1, down by 0.58%.