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Stocks

London Blue Chips Rise for Seventh Consecutive Trading Day

Strategic Insights

— 1 min read

Markets in London continued their winning streak, with the FTSE 100 reaching a 16-month high of 4,457.5 after a 0.3% gain. The mid-cap FTSE 250 also rose by 0.4% to 5,775.9. Retailers were a key focus, with Next, Gus, and Matalan experiencing significant gains due to strong festive trading reports and potential bid speculation. Miners also performed well, boosted by the rising price of gold, copper, and nickel.

Key Takeaways:

  • The FTSE 100 rose 0.3% to 4,457.5, a fresh 16-month high, driven by gains on Wall Street and strength in the UK market.
  • The mid-cap FTSE 250 added 0.4% to 5,775.9, with retailers being a major focus point.
  • Next rose 1.6% to £11.15 due to speculation it outperformed the clothing sector over Christmas and bears neutralising their positions.
  • Matalan surged 8.2% to 177 1/4p on renewed speculation that Wal-Mart's Asda unit may line up a bid.
  • Miners such as Rio Tinto, Anglo American, and BHP Billiton rose 1.9%, 1.8%, and 1.5% respectively, as gold, copper, and nickel prices increased.
  • AstraZeneca added 1.2% to £26.96 on France's approval of its oral anti-clot drug Exanta, paving the way for EU approval.
  • BAE Systems gained 2.1% at 169 3/4p on talk it was looking for more money from the UK government for two aircraft carriers.
  • Granada dipped 0.8% at 120p due to reports it will pay £30m to increase its stake in Arsenal.

Statistics:

  • Volume was a desultory 1.1bn shares.
  • Next rose 1.6% to £11.15, with an implied £10m gain in market value.
  • Rio Tinto rose 1.9% to £15.29, adding £1bn in market value.
  • Gold prices approached an eight-year high, boosting miner shares.
  • AstraZeneca's Exanta boasts a sales potential of around $3bn.
  • The 7-year fleet management services deal won by Lex Vehicle Leasing is worth £1bn.
  • Manchester United's shares added 2.6% at 262 3/4p on reports Ralif Safin is interested in buying the club.

Sources:

  • "London blue chips rise for seventh successive trading day" - Financial Times
  • "FTSE 100 at 16-month high as Next and Gus sparkle" - Financial Times
  • "Mining stocks shine as gold and copper prices surge" - Financial Times
  • "AstraZeneca's Exanta approved in France" - Bloomberg
  • "BAE Systems gains on aircraft carrier talks" - Reuters

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