FTSE 100 Hits 5-Year High

TUESDAY MARKET UPDATE: UK markets staged a significant rally, taking the benchmark index to a level not seen since 2008

Alanna Petroff 5 March, 2013 | 6:17PM
Facebook Twitter LinkedIn

The benchmark FTSE 100 index hit a fresh five-year high that hasn't been seen since early 2008, and the mid-cap FTSE 250 index also rallied ahead on Tuesday.

The FTSE 100 surged forward by 86 points, or 1.4%, to close at 6,432. The FTSE 250 pushed up by 187 points, or 1.4%, to close at 13,861.

On the large-cap index, Serco Group (SRP) led the charge forward. Shares in the services company rallied by 9% after it raised its annual dividend by 20%.

Miners were also among the main market gainers, with Xstrata (XTA) and  Glencore International (GLEN) shares each rallying by 7% and 6%, respectively.

Shares in Standard Chartered (STAN) also popped up by just over 3% after the bank reported its tenth consecutive year of profit growth and hiked its dividend.

This was "a refreshing report following the horror shows from RBS (RBS) and  Lloyds (LLOY)," said Marc Kimsey, a senior trader at Accendo Markets.

In the US, the benchmark Dow Jones Industrial Average has hit a new all-time high, topping the high last set in October 2007.

"The question now is whether or not, in the cold light of underlying fundamentals, this level of positivity can be sustained and what degree of profit-taking there will be," said IG market analyst, Brenda Kelly.

"Dovish comments from the US Fed vice chairman last night have definitely helped to underpin London equity markets, with the FTSE 100 succeeding in breaching the 6400 level," said Kelly. "Eurozone PMI data also acted as a timely boon, beating expectations with a reading of 47.9 versus the 47.3 consensus. EU retail sales also managed to exceed the 0.3% month-on-month increase expected, printing a rise of 1.2%."

To see the top winners and losers on the FTSE 100 each day, check out Morningstar's Heat Map.

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.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Glencore PLC474.30 GBX-0.15Rating
Lloyds Banking Group PLC50.92 GBX-0.16Rating
NatWest Group PLC276.70 GBX0.47Rating
Serco Group PLC179.10 GBX0.56
Standard Chartered PLC666.80 GBX0.79Rating

About Author

Alanna Petroff

Alanna Petroff  is a financial journalist with Morningstar UK.

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures