FTSE 100 finishes at five-month high as rally continues
The City’s top index finished the day up 61.05 points, or 0.81%, at 7,573.05.
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Your support makes all the difference.The FTSE 100 has finished the month at its highest closing price for five months as its recent purple patch continued.
Strong commodity and energy stocks were once again the driving force for a positive session for London traders.
The City’s top index finished the day up 61.05 points, or 0.81%, at 7,573.05.
Chris Beauchamp, chief market analyst at IG, said: “The FTSE 100 continues to outperform its peers and is now up 1% for the year.
“Stronger commodity prices have played a big part in helping the index to best its rivals as indices gird themselves for the final run to year-end, and the lack of a major tech sector has no doubt helped too.
“In tough times, it looks like the solid dividend yields on offer and the index’s undemanding valuation have enticed investors back to the UK market.”
Across the Channel, the other major European markets also had a strong month, with the German Dax gaining almost 8% through November.
The Dax improved 0.29% by the end of the session and the French Cac finished 1.04% higher.
On Wall Street, the main markets were steady at the start of play amid caution prior to Fed chairman Jay Powell’s speech to the Brookings Institute on Wednesday afternoon.
Meanwhile, sterling made strides despite Bank of England chief economist Huw Pill commenting that Brexit has had an impact on the labour market and may have played a part in driving up inflation in the UK.
The pound was up 0.05% against the dollar at 1.195, and was 0.15% higher against the euro at 1.158 at the close.
In company news, handbag maker Mulberry slid after it revealed its UK retail sales plunged 10% in the group’s first half as inflation weighed on customer demand.
Mulberry also confirmed it swung to a pre-tax loss of £3.8 million for the six months to October 1 against profits of £10.2 million a year ago.
The luxury brand saw shares fall by 23p to 262p as a result.
Meanwhile, water firm Pennon dropped in value after its half-year profits slumped by three quarters as it was hit by a doubling of power costs amid the energy crisis.
The South West water operator said first half pre-tax profits tumbled by 75.1% to £22.5 million in the six months to September 30, despite revenues rising by 9.3% to £425.5 million. Shares finished the day down 23p at 916p.
Engine maker Rolls-Royce made gains on Wednesday after the heavily shorted company received a sign of support from brokers at Barclays.
The Bank said there is potential for a “value unlock” around the corner at Rolls, helping to push shares 1.8p higher to 90.92p.
The price of oil built further on recent gains to climb ahead of a key Opec+ meeting this weekend.
Brent crude oil increased by 2.72% to 85.29 US dollars per barrel when the London markets closed.
The biggest risers on the FTSE 100 were Anglo American, up 118p to 3,407.5p, Antofagasta, up 44.5p to 1,408.5p, Endeavor Mining, up 44p to 1,731p, Intertek Group, up 101p to 4,045p, and the London Stock Exchange Group, up 204p to 8,248p.
The biggest fallers on the FTSE 100 were British Land, down 10.4p to 394.3p, Unite Group, down 24p to 922.5p, Tesco, down 5.5p to 227.5p, Segro, down 17.6p to 790.8p, and DCC, down 86p to 4,389p.