FTSE rallies on strong NY close and soaring building stocks
Published: 11 August 2008
By MoneyhighStreet Staff Leave a Comment
Updated: 30 November -0001
The FTSE reacted to a strong close last week in New York and a lack of new economic data from the UK to gain significantly today (August 11th).
At the close, London''s blue chip index was up 52.60 points at 5,541.80.
According to the Press Association, the early gains were a direct reaction to Wall Street''s two per cent jump on Friday, when the US markets were buoyed by a "surge in the dollar and another plunge in oil prices".
The knock on effect in London was that building groups rallied. The PA explained that investors were looking at "potential value in the beleaguered sector".
As a result, Barratt closed up 23 per cent at 158.25, while Taylor Wimpey jumped 15 per cent to 58.50.
Website marketwatch.com reported that the gains at Barrett were the result of "private-equity firm Polaris Capital [revealing] that it holds more than six per cent of the firm".
There were also gains for Persimmon and Carillion.
One of the only significant losers of the day was Eurasian Natural Resources. The natural resources group saw its share price slump over five per cent after copper mining company Kazakhmys increased its stake in the firm but said that it had no plans to bid for ownership.