Sector movers: Homebuilders get a boost as markets take stock of Starmer
By Alexander Bueso
Date: Friday 05 Jul 2024
(Sharecast News) - UK stocks were higher at the end of the week following a massive win for Labour under Sir Keir Starmer in the previous night's election.
That was especially true of the domestically oriented FTSE 250, which as of 1436 BST was trading up by 1.27% at 20,871.71, having earlier hit a fresh 52-week high.
London's top-flight index on the other hand was edging up by only 0.03% to 8,243.33 with its gains capped by a 0.4% rise in cable to 1.2807.
By sectors, everything having to do with bricks and mortar (often a good investment in and of themselves), be it homebuilders, real estate or construction more generally were faring well on the FTSE 350.
Many analysts appeared to be generally quite pleased with the result of the election and its implications for the UK economy.
But there were those who were more cautious, such as Neil Wilson, chief market analyst at Finalto.
"In a much broader sense, you think that investors are going to take a different longer term view of the UK," Wilson said.
"They may see it as more secure after undoubtedly a degree of policy uncertainty overhang in recent years - the dullness dividend. We shall see how long this lasts though, with the fragmentation in the electorate potentially creating unforeseen pressures."
Wilson also believed that the reality of higher taxes had yet to bite, while the fiscal credibility of the new government was as yet untested.
Banks and Big Oil were at the bottom of the pile, likely due to the release of a weaker-than-expected US non-farm payrolls report for June on Friday afternoon.
Those figures were dragging on longer-term government debt yields on either side of the Atlantic.
Top performing sectors so far today
Automobiles & Parts 1,146.11 +2.97%
Construction & Materials 10,979.73 +2.95%
Household Goods & Home Construction 14,010.95 +2.95%
Real Estate Investment & Services 2,298.58 +2.49%
Precious Metals and Mining 11,053.25 +2.40%
Bottom performing sectors so far today
Banks 4,313.80 -0.86%
Oil, Gas and Coal 9,399.42 -0.63%
Life Insurance 5,760.64 -0.30%
Retailers 3,782.19 -0.23%
Alternative Energy 0.00 0.00%
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