The FTSE 100 rallied towards the highest levels since the pandemic started on Thursday as markets digested news Omicron had a lower hospitalisation rate than Delta.
There was also optimism around the effectiveness of the booster against Omicron following a study by an Oxford University lab found the AstraZeneca jab provided protection against the new variant.
The FTSE 100 traded at 7,358, up 0.23%, at the time of writing in light mid morning trade on Thursday.
IAG and Rolls Royce have become proxies for investor trading the Omicron sentiments and this was again the case as the two companies topped the FTSE 100 in early trade.
IAG and Rolls Royce were 4.1% and 3.3% higher at the time of writing.
The positive comments around Omicron have come just in time for the festive holiday booking season that sees holiday makers booking in breaks for the year ahead.
IAG is now the best performing share in the FTSE 100 in December gaining 15%. Flutter Entertainment is not far behind adding 14.6%. Despite a strong December for the companies, both shares are still negative in 2021 year-to-date.
Flutter Acquisition
Flutter Entertainment was also among the top riser on Thursday as it announced the aquistion of Italian gaming brand Sisal for £1.62bn from private equity group CVC Partners.
“I am delighted to add Sisal, Italy’s leading gaming brand, to the Group as we look to attain a gold medal position in the Italian market. For some time we have wanted to pursue this market opportunity via an omni-channel strategy and this acquisition will ideally position us to do so,” said Peter Jackson, Flutter Chief Executive.
“Sisal has grown its online presence significantly in recent years, aided by its proprietary platform and commitment to innovation. I’m excited to see how Flutter can complement these capabilities through our scale, differentiated products and operational capabilities. We look forward to welcoming Francesco and the rest of the Sisal team to Flutter in 2022.”