Cyclicals paced gains in the stock market as UK stocks outperformed again and the top-flight index pushed nearer its five-year highs around 7,900 points.
Cyclicals paced gains in the stock market as UK stocks outperform again and with top-flight index pushing past its post-pandemic highs.
“A slew of trading updates has pushed the FTSE 100 to 7800 for the first time since May 2018, as the UK index continues to outshine its US peers.
The FTSE 100 hit a high of 7,793.45 in June 2018 and of 7,903.50 in May of that same year.
“Housebuilders and retailers have found plenty to be cheery about, if only because things seem to have brightened considerably for the UK economy in the last few months,” the analyst added.
“The second half of the year still seems murky, as everyone has been at pains to point out in their trading updates, but for now the situation seems a lot better than feared.”
Persimmon shares caught a bid – but remained at multi-year lows – even as the luxury homebuilder reported that forward sales fell by 36% across 2022.
“The sharp fall in inflationary pressures in the US is helping to translate into weakness in UK gilt yields, with the prospect that lower inflation and lower rates will combine to create a faster decline, and thus diminish the longer-term economic damage to consumer wallets,” argued Michael Hewson, chief market analyst at CMC Markets UK.
“Persimmon’s stock market valuation has almost halved over a one-year period, underperforming rivals Taylor Wimpey, Barratt Developments and Bellway,” chipped in Interactive Investor‘s head of investment, Victoria Scholar.
“There is a rather pessimistic view on the stock from the analyst community with twelve hold or sell recommendations versus just six buys.”
In the retail space meanwhile investors cheered the latest trading updates out of Tesco and Whitbread.
Telco stocks got a boost from a Bank of America upgrade on Vodafone shares to ‘buy’.
Top performing sectors so far today
Household Goods & Home Construction 11,314.60 +5.59%
Telecommunications Service Providers 2,350.23 +3.99%
Real Estate Investment Trusts 2,421.73 +2.63%
Leisure Goods 23,395.35 +2.57%
Automobiles & Parts 1,580.22 +2.38%
Bottom performing sectors so far today
Electricity 10,356.56 -0.94%
Pharmaceuticals & Biotechnology 21,272.30 -0.67%
Beverages 27,856.85 -0.27%
Top performing sectors so far today
Household Goods & Home Construction 11,314.60 +5.59%
Telecommunications Service Providers 2,350.23 +3.99%
Real Estate Investment Trusts 2,421.73 +2.63%
Leisure Goods 23,395.35 +2.57%
Automobiles & Parts 1,580.22 +2.38%
Bottom performing sectors so far today
Electricity 10,356.56 -0.94%
Pharmaceuticals & Biotechnology 21,272.30 -0.67%
Beverages 27,856.85 -0.27%
