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

British shares struggled above the flat line on Thursday, buoyed by gains for the international hotel group and Mitchells & Butlers after positive note from analysts, while Vivo Energy shares rose after news of a $2.3 billion takeover deal.

FTSE 100 UKX Index,
+ 0.18%
It rose 0.1% to 7,293, but is up about 1% during the week so far, bucking the weaker trend across European indices. GBPUSD,
-0.08%
It was steady at $1.3325.

The negative impact on resource stocks has been, with energy giant Royal Dutch Shell RDSA,
-0.59%

RDS.A,
+ 0.36%
down 0.8%, while Rio Tinto RIO miners,
-0.14%

rio,
-0.87%
and Glencore Glenn,
-0.71%
It fell 1% each.

CL00 oil prices,
-0.29%

BRN00,
-0.06%
It closed slightly lower on Wednesday as US inventories rose and traders awaited a response from OPEC and its allies to the US Reserve’s release earlier this week.

US markets will be closed Thursday for the Thanksgiving holiday, and open Friday for a brief session.

IHG International Hotel Group,
-0.58%

IHG,
+ 2.95%
The FTSE 100 led the gainers, up 2.7% after a double-buying upgrade from analysts at Jefferies, as a team led by James Whitcroft predicted pent-up demand would lead to more investor interest in leisure. “Encouraging data is focused on hotels for 2022,” he said, adding that it also remains positive in the gaming sector.

Additionally, analysts predict that “low-ticket and easily accessible leisure activities such as bars, restaurants, movie theatres, and caterers will rebound quickly as the background returns to normal, buoyed by market share gains.”
+ 1.98%And
Cineworld CINE,
-0.56%
and J.D. Wetherspoon JDW,
-0.22%And
Mitchells & Butler Mapp,
+ 3.90%
All are rated buy at Jefferies.

Shares of Mitchells & Butler rose 4% and Whitbread 2%. Cineworld shares fell 1% and JD Wetherspoon was unchanged. The group also raised Melia Hotels International MEL,
+ 4.37%
In Spain to buy, those shares rose 4.6%.

on the FTSE 250 MCX,
+ 0.20%And
Vivo Energy VVO shares,
+ 19.21%
It rose nearly 20% after the Africa-focused fuels and lubricants retailer and distributor agreed to buy VIP II Blue BV, a wholly owned and indirect subsidiary of Vitol Investment Partnership II Ltd, an independent energy marketing and trading company.

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