FTSE keeps up momentum
24/08/2009 - 13:29:08
The FTSE 100 Index built on its winning streak today as investors maintained the momentum that has seen the market reach a 10-month high.
London is enjoying its best summer rally in 25 years as sentiment grows on the prospects for global economic recovery.
The Footsie, which has climbed in line with other world markets, rose above 4900 at one stage before settling 21.56 points higher at 4872.7 by lunchtime.
Its rise follows a strong trading day in Asia which saw Japan’s Nikkei finish 3% higher and the Hang Seng in Hong Kong lift 2% as the region latched on to Friday’s comments from Federal Reserve chairman Ben Bernanke that the US was close to pulling out of recession.
Wall Street was also set for a marginal lift today, with the Dow Jones Industrial Average tipped to start the day up 0.3%.
Meanwhile, oil is trading above $74 a barrel as the stock market surge and optimism economic optimism take effect.
While commentators said the London market was enjoying its biggest summer equity rally in 25 years, they warned the gains were built on slim dealing volumes and would be tested in busier times next month.
[James Villas]
Miners drove today’s top flight rally, with rises of as much as 5% in the case of Kazakhmys.
The part-nationalised banks were also on the march today amid improved sentiment. Lloyds was one of the Footsie’s leading winners, adding 5% or 5.35p to 106.93p and Royal Bank of Scotland cheered 2.37p to 50.85p.
Advertising and PR group WPP rose by 5% after a broker upgrade from Deutsche Bank eased the nerves of investors amid fears the company will downgrade its forecasts in interim results due later this week.
Shares were 26p higher at 530.5p.
Packaging firm Bunzl took the top-flight crown with a 6% lift – up 32.5p to 584.5p – after it reported a 4% rise in half-year profits and said margins improved in most of its major markets.
Another riser was engineering and construction firm Balfour Beatty, which added 10.6p to 352.8p after announcing it had been selected for a $415m (€290m) road project in Texas.
Security group G4S also hailed its robust performance following half-year results, but the company failed to get a boost after analysts said bottom-line profits were slightly below expectations. Shares were at the top of the FTSE 100 Index fallers board after a drop of 3% or 7p to 217.1p.
