FTSE 100 MAKES GAINS AS BRITONS HEAD TO POLLS

The FTSE 100 swung firmly higher on Thursday as voters headed to polling stations across the country.

The pound was also in positive territory following the session, as traders and investors await the General Election result, with opinion polls widely pointing towards a significant Labour party majority in the run-up to the vote.

London’s top stock index finished at its highest level for a week, as it was supported by a strong session for banking stocks and significant jump for medical equipment firm Smith & Nephew.

The FTSE 100 finished 70.14 points, or 0.86% higher to end the day at 8,241.26.

Across the Channel, trading was also positive. The Cac 40 in France ended 0.83% higher and the Dax index was up 0.43% at the close.

There was also a break from political uncertainty in the US as they enjoyed the Independence Day holiday.

Joshua Mahoney, chief market analyst at Scope Markets, said: “European markets are maintaining their upbeat tone as we move through the week, with the FTSE 100 leading the way as the electorate head to the polls.

“Coming off the back of a volatile 14-year stint for the Conservative party that saw five Prime Ministers within the past nine-years alone, we are seeing the pound strengthen in anticipation of a shift to a stable Labour majority should that come to pass.”

Sterling climbed to its higher reading against the dollar for three weeks as a result.

The pound was up 0.13% at 1.276 US dollars and was down 0.07% at 1.180 euros.

In company news, Smith & Nephew was the FTSE 100’s top performer as shares were lifted by activist investor Cevian revealing it has taken a stake in the group.

Swedish group Cevian is now the medical equipment firm’s second biggest shareholder after snapping up a 5% holding.

Shares in Smith & Nephew had dipped since the start of the year, but rebounded by 6.87% to 1,054p on Thursday.

Peel Hunt made strong gains after it revealed its revenues are ahead of where they were at the same time last year.

The London-based investment bank said it had seen “some improvement in the macroeconomic backdrop” in recent months.

As a result, shares in the business rose by 3.88% to 134p at the close.

Shopping centre owner NewRiver saw shares drop after it revealed a deal to buy Ellandi Management.

It confirmed a deal, which could see it paying up to £9 million, to buy Ellandi, which is currently working on Blackpool town centre’s regeneration. NewRiver shares dropped 4.18% to 75.7p.

Barclays finished up 2.84% at 224.35p after it agreed to sell its German consumer finance arm to an Austrian bank as part of the high street lender’s latest efforts to simplify the business.

The price of oil ricked slightly higher amid shorter trading on the futures market due to Independence Day.

A barrel of Brent crude oil was up by 0.18% to 85.29 US dollars as markets were closing in London.

The biggest risers on the FTSE 100 were Smith & Nephew, up 67.8p to 1054p, Bunzl, up 88p to 3120p, Barclays, up 6.2p to 224.35p, Melrose Industries, up 15p to 573.8p, and Lloyds, up 1.4p to 57.28p.

The biggest fallers on the FTSE 100 were Next, down 174p at 8,938p, Spirax Group, down 150p at 8,435p, Croda, down 55p at 4,035p, Haleon, down 3.9p at 322.2p, and Halma, down 27p at 2,690p.

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2024-07-04T16:32:55Z dg43tfdfdgfd