London pre-open: Stocks seen up as oil surges on OPEC+ output cut

(Sharecast News) - London stocks were set to rise at the open on Monday, boosted by a surge in oil prices. The FTSE 100 was called to open 20 points higher at 7,651.

Over the weekend, OPEC+ unexpectedly announced that they would be cutting oil output by 1.1m barrels a day from next month.

CMC Markets analyst Michael Hewson said: "Today's European open looks set to be a mixed one with the focus expected to be on the OPEC+ surprise production cut announcement over the weekend, which could offer a lift to the likes of BP and Shell, and ergo the FTSE100, but weigh on other areas of the market."

In corporate news, the UK government has extended plans to start slowing selling down its stake in NatWest Group.

UK Government Investments (UKGI), which manages the government's 41.5% shareholding in the lender, first announced plans to slowing sell down its stake in July 2021.

It was extended last summer until 11 August 2023, and it will now be extended once again, to 11 August 2025.

No reason was given for the extension.

Elsewhere, Hammerson said it had sold its 25% stake in Italie Deux, a shopping centre in central Paris, and all of a separate extension for €164m to IKEA owner Ingka Centres.

This sale represents a 4% discount to December 31 book value and a net equivalent yield of 5.0%, Hammerson said, adding that the cash would be used to strengthen its balance sheet and reduce net debt.

Animal genetics company Genus announced the appointment of Jorgen Kokke as its new chief executive officer on Monday, with him set to take over from incumbent Stephen Wilson on 1 July.

Wilson would remain actively involved in the company until his retirement on 30 September. Genus said Kokke had spent the last 14 years in global business leadership roles at Ingredion, a food and beverage ingredient solutions company, and was most recently executive vice-president, and president of the Americas geography.