by Nexus Investor
The FTSE 100 is floating higher than a helium balloon at a children’s party, reaching a new record of 8,470 points, up 56 points for the day. The blue-chip index has been on a winning streak, finally shedding the gloom of recent economic clouds to close out the week at a sunny new high.
Economy Rebounds: GDP Grows by 0.6% in Q1: FTSE 100
One of the significant drivers behind this rally is the UK’s economic comeback. The latest GDP data shows 0.6% growth in the first quarter, the fastest pace in two years, officially pulling the country out of recession. It’s enough to bring a smile even to the most jaded investor’s face.
Top Performers and Movers: FTSE 100
Today’s gains of FTSE 100 constituents were driven by strong performances from St. James’s Place, Standard Chartered, and Spirax-Sarco Engineering, each rising 3%
Prudential has also caught Nexus Investor’s eye, with shares up to 795.90p after hitting lows of 687p in mid-April. The financial giant appears to have turned a corner, and back in November investment bank Jefferies agreed.
“In the wake of Prudential PLC’s third-quarter results, Jefferies reiterated its bullish stance on the UK savings and pension heavyweight. In a note to clients, the bank stated that Prudential’s shares are worth 1,950.00p each, marking an impressive 117% premium to the current price.
Jefferies’ analysis highlights Prudential’s robust performance, noting a 37% year-on-year growth in new business profit (NBP) for the first nine months of 2023. This figure closely mirrors the growth trajectory of Asian insurance giant AIA and even surpasses it when excluding economic impacts, with Prudential’s NBP rising by 48%.”
With the shares now lower than they were back in November, now could be a decent entry point for anyone wishing to take a position.
In other news, Anglo American saw a 1.5% increase amid speculation that Rio Tinto is considering an acquisition, with Glencore also reportedly eyeing an offer.
On the downside, Rightmove was the index’s biggest loser, sliding nearly 5% after failing to tweak its guidance despite predicting a better year for the UK property market in 2024 than in 2023.
British Airways owner IAG remained grounded, reporting net losses after tax of €4 million, a significant improvement from the €87 million loss in the first quarter of last year.
Tesla Gigafactory Protest
Meanwhile, Tesla’s gigafactory in the UK was stormed by protesters, but the broader market shrugged off the disruption. The protest, focused on environmental concerns, underscored ongoing tensions between climate activists and major corporations.
Market Outlook: FTSE 100
With clear skies above and the economy cruising at altitude, the FTSE 100’s new high reflects growing investor confidence in the UK’s growth prospects. Though challenges persist, such as inflationary pressures and global economic uncertainties, the index seems set for a smooth flight to further gains in the coming weeks.
Please check out our other articles relating to UK interest rates being held on 9th May 2024 and rising mortgage rates as a consequence which can have an impact on equities and cryptocurrencies.
Nexus Investor is an independent market analyst providing insights into global financial markets. Nothing in this article should be deemed investment advice. All investments carry risk and your investments can go up or down. Please conduct your own research and consult a professional financial advisor if you need further assistance.
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