FTSE consolidates good week
|Published
Picture: Shaun Curry Picture: Shaun Curry
London - Britain's top share index edged higher on Friday, consolidating a good week which has seen shares close in on their 2016 highs, although commodity stocks paused after a strong run.
The FTSE 100 index moved up 10.37 points, or 0.2 percent, to 6,211.49 points by 08h51 GMT, taking gains for the week to 1.2 percent.
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The index neared the 6,220 level touched in the previous session, which was the highest level for the index since the first trading session of 2016.
Much of the recent strength in the index has been down to appetite for mining and oil stocks, which rose on Thursday as a weaker dollar made dollar-denominated commodities cheaper for holders of other currencies.
The oil and gas sector hit its highest level since November, but pulled back on Friday as oil turned lower.
Miners were pegged back by a dip in copper and gold prices, as well as a downgrade by Credit Suisse.
“The sector is up 60 percent from January lows, so has done fantastically well. Commodity prices are a shade weaker after enjoying a good day, that's what's leading it,” said Chris Beauchamp, market analyst at IG.
“But the China demand story continues to pick up, and if the dollar weakness continues, then they should recover, and that will help the FTSE 100 hit new highs.”
Banks and other financial stocks were in demand. The British market notably outperforming euro zone banks, with Italian banks volatile again as uncertainty over mergers in the sector continued.
IG's Beauchamp said that British listed banks were more insulated from negative interest rates in the euro zone, which have hit bank profitability. An official said the European Central Bank can cut interest rates again if the euro zone's economy fails to pick up.
Traders said volumes were low, which was partly due to an options expiry around 10h15 GMT that was a possible trigger for volatility.
Among individual movers, Berkeley Group fell 1.5 percent after an interim management statement. While it said that it saw results coming in at the top end of expectations, reservations were about 4 percent lower than 2014/15.
Some traders said that after a 10 percent rally in a little over a week leading up to the statement, there were a lack of catalysts to buy the stock, especially given changes to stamp duty that are coming into force next month.
REUTERS