By Johann M Cherian and Shristi Achar A
(Reuters) -Britain's commodity-heavy FTSE 100 ended at a three-week high on Monday, lifted by oil majors as crude prices rallied, while Cineworld Group (LON:CINE) hit a fresh record low after the cinema chain operator scrapped a major sale plan.
The blue-chip FTSE 100 rose 0.5%, starting the new quarter higher, while the mid-cap FTSE 250 slipped 0.3%.
Energy heavyweights Shell (LON:RDSa) Plc and BP (LON:BP) Plc advanced more than 4% each, as oil prices jumped nearly 6% following an unexpected output cut by the Organization of the Petroleum Exporting Countries and its allies. [O/R]
The broader energy sector rallied 4.2%, its biggest daily gain in over four months.
"The FTSE 100 is leading the charge among European markets, with Shell and BP at the top of the index", after the unexpected move by OPEC+ to boost oil prices, said Victoria Scholar, head of investment at interactive investor.
Lenders, up 1.2%, also lifted the blue-chip FTSE 100.
Cineworld Group Plc plunged 32.5% after hitting a record low earlier in the session, as the cinema operator said it has terminated the sale process for its U.S., UK and Ireland businesses.
While both the FTSE indexes started 2023 stronger on hopes that the global economy would avoid a recession this year, with the FTSE 100 even reaching record highs, the optimism was put to the test in March following a global banking sector turmoil.
NCC Group Plc dropped 7.9% after a string of brokerages cut their price-target levels on the IT services and consulting firm.
Higher oil prices hurt airlines' stocks including Wizz Air (LON:WIZZ) Holdings Plc and Easyjet (LON:EZJ) Plc, which shed 4.8% and 1.2%, respectively.
British manufacturers slipped deeper into decline in March but turned more optimistic about the future as cost pressures and supply chain problems eased off, a survey showed on Monday.