FTSE Falls but Smaller Stocks Rally on Confirmation of Election

Prime Minister Theresa May won backing from parliament for a snap election in June today, causing the stock market split fortunes

Karen Kwok 19 April, 2017 | 4:47PM

Domestically-focused UK stocks have rallied today – despite the FTSE 100 index falling 3% since yesterday, erasing 2017 gains. The losses came following the UK Prime Minister Theresa May securing a majority vote in the House of Commons to call a General Election on June 8.

The FTSE 250, which is made up of smaller and more domestic-focused UK companies, gained 0.7% today; with retailers and homebuilders posting share price gains.

After touching new record highs several times in the past three months, the FTSE 100 is currently down 0.6% year to date. A stronger sterling, following the announcement of a General Election in June, is the main driver of the market fall. International companies, which source their revenues in dollars, make up a significant part of the blue-chip index, meaning currency fluctuations play a large part in FTSE 100 returns.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Barratt Developments PLC543.60 GBP0.00
easyJet PLC664.00 GBP0.00
Franklin UK Equity Income A Acc1.73 GBP-0.37
Marks & Spencer Group PLC96.00 GBP0.00
Morrison (Wm) Supermarkets PLC182.85 GBP0.00
Next PLC4,717.00 GBP0.00
Persimmon PLC2,635.00 GBP0.00
Sainsbury (J) PLC193.75 GBP0.00
Taylor Wimpey PLC145.00 GBP0.00

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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