FTSE 100 exceeds 7,000 for the first time in over a year
The FTSE 100 rose above 7,000 this morning for the first time since the end of last February, shortly after the pandemic triggered sharp declines in global stock markets.
The index rose for the fourth consecutive session, adding another 46.02 points, or 0.7%, to 7,029.52. It was again led higher by its travel, banking and mining companies, which were revitalized over the winter in anticipation of a strong rebound in the global economy.
IAG, the owner of British Airways, rose 5½p, or 2.6 percent, to 212¼p; big Barclays bank rose 4½, or 2.5 percent, to 189¼p; and Russian steelmaker Evraz gained 12p, or 2.0 percent, to 626p.
Ivan Sedgwick, chief investment officer of the finance house LGB & Co, said: “With the FTSE’s heavy weighting in resource stocks and financials, and its exposure to old economy companies, it is not. surprising that it benefited from the expected economic recovery. we are already seeing signs of the vaccines working. “
The FTSE 250, whose components tend to be more biased in the UK, hit a new record, gaining 105.65 points, or 0.5%, to 22,577.69.
WH Smith topped the city’s rankings after the stock was upgraded to “buy” by analysts at Canadian investment bank RBC. They believe there is a “strong pent-up demand” for travel, which bodes well for WH Smith as most of its profits come from stores at its airport and train station. Additionally, RBC believes its traditional Main Street business has “proven to be more resilient” than it initially thought. Shares rose 76½p, or 4.2 percent, to £ 19.10.
Auto parts maker TI Fluid Systems fell 17½p, or 5.7 percent, to 290½p after its largest shareholder, US private equity group Bain Capital, abandoned a £ 146million stake. TI Fluids chief executive Bill Kozyra, who is stepping down later this year, also sold £ 1.1million of his shares in the company.