FTSE 100 Recovery: Is it Time to Take Profits?

The FTSE 100 is up 9.9% to date, even after tumbling post Brexit vote. Could it be time to take some gains from overvalued stocks?

Karen Kwok 19 July, 2016 | 3:23PM
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The FTSE 100 closed at an 11-month high yesterday, boosted by a share price surge of tech company ARM Holdings (ARM) after its agreement on a £24.3 billion cash takeover deal by Japan’s SoftBank Group.

The blue-chip index, which made up of UK’s largest 100 companies, ended 0.4% higher at 6695.42 on Monday. The surging share price of ARM holdings, which designs chips used in smartphones and other connected devices, is the main driver of the index rout. ARM closes at 44% higher to 1714.21p on Monday.

ARM said the takeover is a "great deal for the UK" as its suitor pledged to double the company's UK workforce and keep the firm at its Cambridge headquarters.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
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Anglo American PLC2,762.50 GBX-1.99Rating
Rio Tinto PLC4,657.50 GBX-1.43Rating
Royal Dutch Shell PLC B1,768.00 GBX-0.90Rating

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk