Wed, 18th Jul 2018
The FTSE 100 and FTSE 250 climbed on Tuesday, with encouraging results flowing in from several companies including Royal Mail and TalkTalk. The mood was dampened, however, by ongoing uncertainty over Brexit.
The FTSE 100 ended the session up by 0.3 percent, sitting at 7,626.44 points, in line with the European markets, which were boosted by the U.S. Fed Chair Jerome Powell giving an upbeat assessment of the U.S. economy in his testimony.
It was results from UK companies that drove the lion’s share of movements in the FTSE 100. Royal Mail Group gained 1.8 percent after posting better than expected parcel growth. Analysts feel that the stock is highly shorted, and that this means that the share price gets boosted disproportionately when short-sellers respond to news. There is some fear that the GDPR effect has only just begun, and that as consumers realize how easy it is to opt out of junk mail we will see a big impact on the company’s performance.
Meanwhile, Talk Talk was the top performer in the FTSE 250, gaining 8 percent after it posted some strong results, including adding 80,000 subscribers. The company’s AGM is set to take place on Wednesday, and analysts will be watching closely to see how investors feel about the 200 million pound rights issue earlier in the year.
Another major mover was Galliford Try. The mid-cap company gained four percent after forecasting lower debt levels for the year ending June 30th.