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FTSE 250 Hits New High

Renewed confidence in UK economy as mid-cap index hits fresh record in early trading

Emma Simon 10 February, 2017 | 12:25PM

The FTSE 250 climbed 0.4% after opening this morning to hit a new record high – at 18,670 points.

This mid-cap index – which is dominated by UK companies – has risen steadily in since mid-January and is up 3.4% since the start of the year. This compares to a rise of just 1.6% in the FTSE 100.

Many commentators have pointed out that gains in the larger blue chip index have been largely due to a weaker sterling. Many of the global companies that dominate the FTSE 100 earn revenue overseas, so have benefitted from a weaker pound.

In contrast the performance of the FTSE 250 is considered a better reflection of the state of the UK economy, as more of its constituents are UK-based mid-sized companies.

The rise this morning was led by a 6.5% rise in Elementis (ELM), the chemical group, after it unveiled plans to buy chemicals platform SummitReheis for $360 million (£288 million). Mineral company Kaz Minerals (KAZ) was also up by almost 5%, as was emerging market investment manager Ashmore (ASHM).

Earlier this week the FTSE 250 closed at a record high after the Bank of England deputy governor Kristin Forbes hinted at a future interest rate rise in the UK. 

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article
Security NamePriceChange (%)Morningstar
Rating
Ashmore Group PLC360.30 GBX0.61-
Elementis PLC300.70 GBX1.28-
KAZ Minerals PLC470.80 GBX-2.32-
About Author Emma Simon

Emma Simon  is a financial journalist, specialising in investment and consumer issues, writing for Morningstar.co.uk