Markets: Results drive FTSE to strong bounce
London’s leading share index racked up its biggest single session gain in four weeks yesterday as a number of firms posted solid results and investors took on fresh bets at the start of a new month.
The benchmark FTSE 100 ended October on a sour note, shedding 1.2 per cent during Wednesday’s trading, following a string of gloomy earnings and outlooks from firms such as Barclays, BG Group and GlaxoSmithKline.
However, stocks recovered in yesterday’s session in strong volumes of 140 per cent of the 90-day average. The Footsie ended the day up 79.22 points at 5,861.92, a rise of 1.4 per cent – the biggest gain since 1 October, with banks alone adding nearly 20 points.
Andy Ash, head of sales at Monument Securities, said: “I think the most important thing is that it’s the first day of the month. I would think that a lot of it is about funds closing down their October positions, and opening up new ones for November.”
The top tier was boosted by gains from major players BSkyB, BT and Lloyds Banking Group following well-received results and trading updates. Royal Bank of Scotland, which will take its turn in the spotlight today, was 11.2p higher at 287.2p, while Barclays was 11.75p stronger at 239.25p.
BT jumped 7 per cent, up 14.5p to 227p, after it added 81,000 retail broadband customers in the quarter to 30 September, nearly half of net additions across the whole market. The rise came despite BT cutting its revenue outlook for the full year.
BSkyB was 50p higher at 759p after first-quarter results showed a better-than-expected 3 per cent rise in underlying earnings to £392 million.
NEW YORK: US stocks jumped 1 per cent last night as bullish consumer confidence and private-sector jobs data gave investors reason to cheer following superstorm Sandy’s devastating sweep through the US Northeast.
The Dow Jones industrial average rose 136.16 points, or 1.04 per cent, to end at 13,232.62 while the broader Standard & Poor’s 500 gained 15.43 points, or 1.09 per cent, to finish at 1,427.59. The Nasdaq Composite added 42.83 points, or 1.44 per cent, to close at 3,020.06.
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Weather for Edinburgh
Thursday 20 June 2013
Temperature: 11 C to 19 C
Wind Speed: 7 mph
Wind direction: North
Temperature: 11 C to 18 C
Wind Speed: 13 mph
Wind direction: West