Seventh day of straight gains for the FTSE
City Index July 4, 2011 4:08 PM
<p>The FTSE 100 saw a seventh day of consecutive gains in low volumes with many traders away from their dealing screens for the US Independence Day holiday. […]</p>
The FTSE 100 saw a seventh day of consecutive gains in low volumes with many traders away from their dealing screens for the US Independence Day holiday. Continued demand for heavyweight mining and oil firms, along with high demand for property firms, pushed the UK Index higher by 38 points going into the close, with profit taking in UK banks preventing the FTSE from rallying further.
It’s been yet another positive session for the FTSE 100, though we must recognise the fact that much of today’s advance was certainty exacerbated by low volumes. That said, the terrific run of gains seen in the FTSE of late is certainly giving those who want to take profits at current levels a bit of a problem in fearing missing out on any continued moves higher. If the FTSE 100 can come through near term resistance of 6050, then the UK Index could be primed for another attack on the year’s high of 6105.
The reaction from ratings agency Standard and Poor to caution that the recent draft agreement by French and German banks to rollover Greek debt, despite the voluntary nature of it, could be classified as a selective default, reminds traders that despite the austerity package and stock market reactions last week, the Greek situation remains far from resolved. The reaction from Standard and Poor has however given traders an excuse to reduce the size of their holdings in some of the UK banking stocks, forcing the banking sector lower by 0.5%.
Topping the weaker banking stocks was shares of Lloyds Banking Group, whose share slumped 1.5% after a stellar week of gains last week that saw prices rise 17%. Today we have seen investors locking in their gains after last weeks strong rally. Shares are now trading back along the key psychological level of 50p.
One of the standout performers today has been property stocks, largely on positive broker comments. Deutsche Bank recommending the shares of British Land immediately sent the company’s shares towards the top of the FTSE 100 equity leader board, with share prices rallying 2.5% in the process. Peer Land Securities also saw higher demand on the day, rallying 1.7%.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.