Business Irish

Friday 9 December 2016

London FTSE surges most in eight years to reverse Brexit losses

Published 02/07/2016 | 02:30

Pedestrians are reflected in the window of a securities company showing stock prices on the Tokyo Stock Exchange. Photo: AFP/Getty Images
Pedestrians are reflected in the window of a securities company showing stock prices on the Tokyo Stock Exchange. Photo: AFP/Getty Images

Britain's main stock index hit its highest level in almost a year after the biggest four-day jump since 2008. The share rally in the UK was the clearest sign yet that investors are starting to put the two-day post-Brexit vote crash in the rear view mirror.

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The FTSE 100 Index yesterday climbed 1.1pc, with 82 of its 100 shares rising as the pound weakened. A gauge of banks reversed losses after people familiar with the matter said the Bank of England is planning to cut capital requirements as early as next week - a move that will make it easier for UK banks to lend profitably.

The benchmark gauge for UK stocks recovered in just four days from its post-Brexit vote slide, even ending June as the best performer among developed markets tracked by Bloomberg.

The rise was given an added boost after Bank of England governor Mark Carney's reassurance that his bank is ready to loosen policy to cope with the risk of a post referendum slow down.

The FTSE 100 rallied 10pc in just four days heading into yesterday's close.

The broader FTSE All-Share Index and Ireland's Iseq Index also rose yesterday. The regional Stoxx Europe 600 Index advanced 0.7pc.

The Iseq rose 1.91pc to 5749.96, clawing back some of the previous week's losses but still well below the pre-Brexit count level.

Strong gainers in Dublin included Zamano, up more than 8pc and Smurfit Kappa, up 6.64pc at €21.115. Among stocks most exposed to Britain, Ryanair closed up 4.59pc at €11.84 a share after confirming buy-back plans, and ferry operator Irish Continental Group (ICG) closed up 4.17pc at €4.375pc. ICG's second biggest shareholder Wellington Management Group confirmed raising its stake in the company to 10.60pc.

In a mixed day though, Bank of Ireland, Malin, FBD and Dalata were all lower. yesterday.

Irish Independent

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