FTSE flying high as financials firm

The top share index in the UK broke through a key resistance level on Thursday, boosted by news from the eurozone. By the end of the session, the FTSE 100 was up by 0.7 per cent, adding more than 38 points to close at 5741.

Chris Bradshaw
shareprices.com - Friday, January 20, 2012

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Barclays

Volumes in the market were far heavier than in recent weeks with 153 per cent of the 90 day average, reflecting the growing confidence amongst investors. The key resistance level of 5700 was comfortably broken during trading and analysts have predicted that the trend will be higher as a bearish tone settles over the market.

The move upwards has partly been prompted by news that the bailout fund could quadruple in size with the IMF committed to helping nations hit by the eurozone debt crisis. Bankers in the UK profited from the renewed confidence, with Barclays adding 10 per cent. Other financials were also higher with Aviva climbing 5.2 per cent and Schroders up by 5.3 per cent.

Airline operators have also been hit by fears about the global economy so a u-turn in sentiment helped to lift the sector. IAG, the parent firm of British Airways, was one of the first to climb the leaderboard, higher by 6.5 per cent.

Unfortunately, supermarkets were not following the rest of the stocks into the black with both Tesco and Sainsburys suffering a broker downgrade.

Also sliding in the wrong direction was publishing company Pearson which shed 1.3 per cent after raising its guidance for 2011 earnings three times, leading to concerns over value.

AstraZeneca dropped 1.3 per cent after failing to get approval for its new diabetic drug.

 

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