Flat end for UK blue-chips belies stellar month
The FTSE 100 index closed virtually unchanged ahead of the long holiday weekend, concealing an exceptional gains over the month of April
More and more of late, market commentators have been suggesting this latest market run is in fact a bull market and not the bear market rally that many had feared. The FTSE 100 index closed just 0.01% lower, slipping 0.5 points to 4,243.2. The FTSE 250 index managed a slightly more upbeat performance, adding 42.4 points or 0.6% to end Friday’s session at 7,571.3.
Trading volumes were unusually low throughout the session, with several European markets remaining closed for a holiday. Still, the FTSE’s blue-chip index managed to rack up gains of over 22% since its six-year low in early March.
On the economic front, data released earlier today revealed the contraction of the UK manufacturing sector slowed to its lowest pace since last summer, helped by sterling weakness attracting new orders. Another positive reading came from the CIPS/Markit manufacturing purchasing managers' index, which rose to 42.9 in April from the previous month’s revised 39.5 reading.
Among equity movements, the mining sector was the main fuel behind the UK benchmark’s gain as the price of copper and other base metals moved higher. Kazakhmys was the top riser, up 10.3% at 590p, while Vedanta Resources, Xstrata, Antofagasta and Eurasian Natural Resources each added between 4% and 6%.
After several strong performances throughout the week, banking and insurance stocks were mixed over the final session, with Lloyds Banking Group losing 2.1% to 109.6p and Barclays slipping 0.9% to 279p. Royal Bank of Scotland, on the other hand jumped 5.3% to 44p ahead of its results in a week’s time.
On the downside, travel and tourism stocks continued to feel the pressure applied by the spread of swine flu, with Intercontinental Hotels down 3.3% to 626p, and tour operators Thomas Cook Group and TUI Travel dropping 1.1% and 1.3%, respectively, to 259.75p and 250p.
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