Market report: Footsie hits fresh record as analysts predict blue-chip index to cross 8,000-mark next week
The FTSE 100 hit a record high as analysts predicted London’s top index could reach the 8,000 mark next week.
On another day of gains, the blue-chip index rose 0.3 percent, or 25.98 points, to 7911.15.
It eclipsed the previous record of 7901 set at the end of last week and has gained over 6 percent this year.
Record highs: On another day of gains, the FTSE 100 rose 0.3%, or 25.98 points, to 7911.15. It eclipsed the previous record of 7901 set last weekend
Footsie traded even higher in early trade, before effortlessly reaching an intra-day record high of 7949.
Analysts say it may not take long to reach the new milestone. ‘At the current rate, we could see the FTSE 100 breaking above the 8000 level early next week, which would represent a long-awaited win for the UK stock market,’ said Ross Mould, investment director at AJ.
This would represent a marked improvement after Footsie fell below 5000 in 2020 during the depth of the pandemic.
Hargreaves Lansdowne analyst Susannah Streeter said easing concerns over rising interest rates and a brighter outlook for the economy fueled the rally.
Bellway and Redrow became the latest housebuilders to point to signs of recovery in the housing market.
After a tough end to 2022, Bellway said more people signed up to buy new homes. It should complete the sale of around 11,000 homes in the 12 months to July.
The market was reeling from the chaos that followed when mortgage rates went up after September’s mini-budget.
Bellway said its reservation rate dropped 31.7 percent to 138 per week in the six months to January, compared with 202 a year earlier.
Stock Watch – Gendrive
Gendrive rose 33 per cent, or 8.25p, to 33.25p after its trial on a drug that could prevent children from becoming deaf was given preliminary approval for use in the NHS.
A Manchester molecular diagnostics firm’s test can detect a variation in children that leaves them at risk of hearing loss if given antibiotics such as gentamicin.
The test means that a different antibiotic can be used to treat the bacterial infection.
It may be given outright approval after the public consultation ends on February 21.
The group still managed to sell 5,695 homes, with the average sale price rising by 1.6 per cent to £316,900.
Its revenue for the period should exceed £1.8 billion – up from £1.77 billion in 2022. Shares rose 1.3 per cent, or 29p, to 2221p.
Meanwhile Redrow boss Matthew Pratt said consumer confidence was starting to take a hit after being ‘severely hit’ by a rise in mortgage rates.
It hailed an ‘encouraging start’ to the second half of its financial year. Its average weekly reservation rate increased to 0.51 per outlet in the five weeks to February 5.
It stood at 0.38 in the six months to January as compared to 0.64 a year ago.
But revenue during the period of £1.03 billion was down 2 per cent on the previous 12 months.
It cut its revenue forecast for 2023 to £2.05 billion from a previous target of £2.1 billion. It also retracted its forecast for 2024. Shares fell 1.2 per cent to 6.5p at 538.5p.
Bellway and Redrow’s results followed a statement on Wednesday from Britain’s biggest housebuilder Barratt Developments that the market was showing early signs of recovery after a sharp downturn.
Avon Protection has taken another step toward becoming the US military’s main helmet supplier after the headgear and gas mask maker won its second order with the US Department of Defense. The order, worth £5.5 million, is part of a helmet contract won by Avon in 2022.
It hopes to start distributing helmets and generate revenue in its next financial year. Shares rose 1.2 per cent, or 11.34p, to 966p.
Argo Blockchain is looking for a new chief executive officer to ‘pursue other opportunities’ after bitcoin miner boss Peter Wall, who is also interim chairman, stepped down.
Chief Operating Officer Saif Al-Baqli has been appointed as interim chief executive while Matthew Shaw will take over as chairman.
This came just a day after the group reported a 14 percent increase in the number of bitcoins mined in January. Its shares fell 12.1 per cent, or 2.2p, to 16p.
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Source: www.dailymail.co.uk
