24th Dec 2013 13:06
LONDON (Alliance News) - UK equities closed higher Tuesday as the so-called "Santa Rally" continued to lift stocks into the Christmas break. Trading volumes, which are typically low at this time of the year, were further knocked as commuters struggled to make it to their desks as storms disrupted transport.
The FTSE 100 closed up 0.2% at 6,694.17, the FTSE 250 closed up 0.3% at 15,783.04, and the AIM All-Share index closed up 0.4% at 836.39.
After an initial sell-off earlier this month, the UK's headline index looks set to close higher in December than it started the month for the eleventh consecutive year, currently sitting 43.6 points above the month's opening level. At current levels, the FTSE 100 is up about 13.5% for 2013 as a whole.
The second big storm to hit the UK in recent weeks further hit volumes that are always light at this time of year. The storm heavily disrupted transport links, with many unable to make it to their offices. With delays and cancellations across many routes, South West Trains alone reported that they were aware of more than nine areas of flooding and were attempting to remove over 60 fallen trees from its tracks.
In an extremely light UK data calendar Tuesday, the British Bankers Association revealed that UK mortgage approvals increased significantly in November, as housing schemes boosted demand from first-time buyers. Mortgages approved in November for house purchases increased to 45,044 from 43,315 in October, exceeding the expected level of 44,500.
In Europe, a leading indicator of Eurozone's economic activity increased further in November, signalling improvement in the region's growth prospects. The Conference Board said that its leading economic index increased 0.5% month-on-month to 110.4. This comes after a 0.4% increase in October.
There was a raft of data released from France. The statistical office of Insee revealed that French consumer spending recovered strongly in November. Household expenditure on goods grew 1.4% month-on-month, the biggest increase since February 2012, when it rose 2.8%. Economists had expected a 0.4% increase, from a 0.1% fall in October.
Alongside this, the French economy shrank 0.1% quarter-on-quarter in the third quarter, confirming preliminary estimates, the statistical office said. The GDP growth figure for the second quarter to 0.6% from the previously estimated 0.5%.
France's debt to gross domestic product ratio fell to 92.7% in the third quarter from 93.5% in the second quarter, Insee also said.
The French CAC 40 closed 0.1% higher.
In the US, stock futures are pointing to a mixed open. Ahead of the New York bell, the S&P 500 is called to open fractionally lower, with the Nasdaq Composite down 0.1%. The DJIA, however, is indicated to open marginally higher.
US mortgage applications recently released by the Mortgage Bankers Association revealed that applications fell 6.3% from one week earlier.
Still to come in the US, durable goods figures are scheduled for 1330 GMT, ahead of the Redbook of retail sales at 1355 GMT and home sales data, along with the Richmond Fed Manufacturing Index at 1500 GMT.
Wall Street, like the London Stock Exchange closes early Tuesday. Trading ceases at 1800 GMT.
Back in the UK, British Sky Broadcasting, up 2.5%, closed as the leading blue-chip gainer. The company said it had made a USD350,000 equity investment in California-based video technology start-up Jaunt Inc, the second investment it has made in this growing area in as many months.
Tullow Oil was amongst the index's biggest losers, closing 1.2% lower. The company said it plans to plug and abandon an exploration well it had drilled in the Mantra prospect offshore Norway after it discovered reservoir quality sands but said all the intervals were water wet.
AIM-listed Daniel Stewart Securities, closing down 20%, was another big faller, despite reporting that its half-year pretax loss significantly narrowed. The company's revenues were down by 58% to GBP2.0 million. Corporate Revenues amounted to GBP2.1 million against GBP2.5 million, while the company's share trading account wiped GBP74,137 from that figure.
Staying in the AIM All-Share index, Boxhill Technologies closed down 14%. The lottery, software, gaming and leisure company reported a wider loss for its last financial year as it booked writedowns related to its restructuring and unit closures. The company reported a net loss of GBP438,000 for the year to end-July compared with a GBP291,000 loss a year earlier.
The London Stock Exchange re-commences trading on Friday.
By James Kemp; [email protected]; @jamespkemp
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Related Shares:
Tullow OilBoxhill TechnologiesDaniel Stewart Securities Plc