- UK shares gained on Friday with FTSE 100 hitting a fresh 14-month high
- The index rallied as much as 0.95 per cent to a new 14-month peak of 7,143.46
- Gains in London equities were largely driven by the upbeat macroeconomic data
UK shares have eventful successive trading sessions in the holiday-truncated with the benchmark FTSE 100 rising nearly 1 per cent to register a fresh 14-month high as investors anticipated a sharp bounce back in the economic activity. The United Kingdom has evidently reached the verge of defeating Covid-19 (SARS CoV-2) virus. Falling rate of hospitalisation, number of daily cases and the following deaths related to coronavirus have consequently backed the economic recovery.
As per the data with the London Stock Exchange, FTSE 100 rallied as much as 0.95 per cent to a new 14-month peak of 7,143.46 from the previous closing of 7,076.17. This is the highest level for FTSE 100 in more than 14 months. As per the historical data, the index last recorded a high of 7,198.23 on 25 February 2020.
FTSE 100 chart (14-month period)
Source: Refinitiv, Thomson Reuters
The gains in London equities were largely driven by the upbeat macroeconomic data with the UK construction sector signalling sustained recovery. According to IHS Markit/CIPS, the UK Construction PMI for April 2021 came in at 60.6 as compared to March’s six-and-a-half year high reading of 61.7. Despite the marginal de-growth, April’s reading has indicated a strong pace of growth in the construction sector with house building, commercial work and civil engineering contributing comprehensively.
With the present day’s gain, the key index stands with a cumulative gain of approximately 10 per cent. In the current week so far, the heavyweight-constituted barometer has managed to gain a little more than 2 per cent within the four sessions.
Surprisingly, the mid-cap reflector FTSE 250 outperformed the leading index. FTSE 250 surged more than 1 per cent, defying the rise of all the other three market capitalisation based stock indicators. The index traded 1.14 per cent higher at 22,746.71, from the previous close of 22,491.36. On the other hand, the wider share indices including the FTSE 350 and FTSE All-Share rallied in-line with the gains of FTSE 100. Both the indices were trading nearly 0.80 per cent higher in the late trades.