Financials, miners and strong Wall Street opening hauls FTSE higher

The FTSE 100 clambered to a one per cent increase today thanks to a rebound in Man Group’s (LONG:EMG) share price and fellow financial sector firm ICAP (LON:IAP) gaining ahead of its full year results announcement tomorrow. Miners also grew in line with metal prices and a strong start on Wall Street has ensured a continuation of growth for the UK’s top index this afternoon.

Rob Hull
shareprices.com - Tuesday, May 18, 2010

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MAN Group rebounded to recoup yesterday's eight per cent fall

The major climber for the day was Man Group which rebounded from an eight per cent loss yesterday transforming the firm’s stock from the worst performer yesterday to the top of the FTSE 100 risers today.

The alternative investment management business announced yesterday it was entering a deal to buy US competitor GLG Partners.

The concern surrounding the £1.1bn deal and slashing of dividend was pushed to one side however today, allowing a nine per cent gain for the share price, closing at a price of 220p to recoup the losses made yesterday.

Close on the heels of MAN Group was fellow sector specialists ICAP.

Shares in the broker climbed over five per cent ahead of its full year earnings report tomorrow and Panmure Gordon upgrading its recommendation to buy from neutral.

Miners, which were subject to a late sell-off on Monday attributing to a late drop for the FTSE, mainly grew today in the face of positive sentiments concerning a potential economic slowdown in China.

And the UK index also benefitted from a strong start to the day for the Dow Jones as eurozone debt fears continued to fizzle out.

Relief in the form of Greece receiving its first lump of bail-out cash today and a second meeting between finance ministers in Brussels to iron-out details of the eurozone loan package boosted both the Dow and the FTSE.

Strong financial reports from US retail conglomerates, Wal-Mart and Home Depot, also pushed Wall Street higher which has been responded to well on the UK market.

Vodafone (LON:VOD) was the most popular stock of the day after it became one of the prime risers yesterday with investors anticipating strong results in its full year report today.

Results were headlined by an 8.4 per cent increase in revenue, however shares have ended the day with little change in price.

Banking majors RBS (LON:RBS), Lloyds (LON:LLOY) and Barclays (LON:BARC) went from the underperforming sector stock yesterday to post increases of between 0.5 and 1.5 per cent today.

The FTSE 100 index closed at 5309.97, an increase of 47.43 points or 0.90 per cent.

 

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