Sector movers: Stocks keep pushing higher as Gilt yields dip
By Alexander Bueso
Date: Wednesday 15 May 2024
(Sharecast News) - Interest rate sensitive areas of the market were again to the fore on Wednesday, helping London's main stock market gauges set fresh record highs.
Triggering the move was data showing a dip in US consumer price gains during the month of April, although the resulting strength in cable was acting as an offset.
The FTSE 100 was ahead by 0.18% to 8,443.04 as of 1606 BST, whilst the yield on the benchmark 10-year Gilt was down 10 basis points at 4.073%.
The second-tier index was ahead by 0.73% to 20,769.06.
In parallel, cable was up by about half a percentage point to 1.2650, having earlier hit an intraday high of 1.2670.
Analysts were divided on the outlook.
For IG chief market analyst Chris Beauchamp "The gains in the FTSE 100 have slowed to a crawl, and tough news from a number of names today has not helped matters.
"In the short term a lot of the good news for the index is now priced in, and a lot of the much-vaunted valuation discount has been cleared through the huge gains of recent week. In the short-term, the catalyst to further gains seems tough to discern."
Equity strategists at Barclays on the other hand were telling clients: "UK equities are starting to catch a bid, but valuation/positioning disconnect vs. fundamentals remains.
"We find FTSE100 and 250 both attractive, but see the latter benefiting more from lower rates and improving domestic demand. Our analysts particularly like Banks, Housebuilding, Retail, Real Estate, Leisure and Utilities."
Top performing sectors so far today
Industrial Support Services 11,554.70 +3.32%
Real Estate Investment Trusts 2,400.82 +2.91%
Telecommunications Service Providers 1,994.62 +2.67%
Construction & Materials 10,718.64 +2.56%
Household Goods & Home Construction 14,041.03 +2.26%
Bottom performing sectors so far today
Personal Goods 15,868.73 -4.02%
Retailers 3,957.62 -2.80%
Oil, Gas and Coal 9,368.95 -1.75%
Industrial Metals & Mining 7,142.49 -1.22%
Banks 4,346.49 -0.52%
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