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FTSE hits record on supermarkets, miners & pound

FTSE 100 hits another all-time high, buoyed by a rally in supermarkets after strong sales figures, rising miners and a falling pound.

 
FTSE hits record on supermarkets, miners & pound

Update: A new day has brought another all-time high for the FTSE 100, which hit 7,275  before falling back to trade at 7,267, up 30 points, or 0.4% on the day.

The UK blue-chip index was supported by supermarkets after forecast-beating results from Morrisons and strong sales from Tesco, a rally in miners, and the pound's continued slump on fears of a 'hard' Brexit.

Morrisons (MRW) jumped 3.5% to 245.7p after the supermarket beat expectations for Christmas trading, reporting the strongest underlying sales performance for seven years.

'Morrisons has taken action on pricing and is now more competitive at the tills, which are ringing more often as the impressive growth in transaction numbers shows,' said George Salmon, equity analyst at Hargreaves Lansdown.

'That must be music to the ears of David Potts, who has steered the group to a much more positive position than during the dark days of the last few years.'

Tesco (TSCO) was close behind, up 4% at 209p, after the UK's biggest retailer recorded the fastest growing sales of the major supermarkets over the Christmas period, according to data from market researchers Kantar Worldpanel.

But the biggest riser on the index was Anglo American (AAL), up 6.2% at £12.26 as metal prices rose after solid inflation figures from China.

Rio Tinto (RIO) was up 4.4% at £32.72, Antofagasta (ANTO) jumped 2.6% to 722p and BHP Billiton (BLT) added 4.1% to £13.96.

The FTSE 100 was given added impetus by the continued fall in the pound, boosting stocks in the index which receive around three-quarters of their earnings from overseas.

The pound neared a 31-year low set last October, falling to $1.211 in the early hours of trading, before recovering some ground to $1.215, down 0.1% on the day.

The latest sell-off in sterling was sparked by prime minister Theresa May's comments over the weekend, when she signalled Britain could leave the single market as part of its European Union exit.

Banks were among the fallers, with Royal Bank of Scotland (RBS) down 1.1% at 224.8p.

On the FTSE 250, Just Eat (JE) was a big faller, down 5.8% at 549p as investors were left disappointed by a lack of a guidance upgrade in its latest results, after five in the last 20 months.

Among 'small cap' stocks, Gocompare (GOCO) jumped 9.6% to 74.3p after the price comparison website reported a 19% jump in full-year revenue.

10 comments so far. Why not have your say?

jolyon kay

Jan 10, 2017 at 11:56

This all-time high depends only on the value of sterling having declined. In real terms it has gone down.

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Alan Tonks

Jan 10, 2017 at 14:46

“The pound's continued slump on fears of a 'hard' Brexit.”

If this Government cared a toss which they don’t, about the situation regarding the pound and Brexit they would do something.

Having said that why would they, after all they are in power to benefit themselves and their pals.

So, Brexit is the goose that lays the golden egg and the pound is the sacrificial lamb to greed.

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Jeffrey Hurst

Jan 10, 2017 at 15:27

Of course this government "Gives a toss" They, like every government, want to be re-elected. When the Bank of England's Haldane admits he got it wrong in his dire forecasts it's time to be looking foreword to the disintegration of the failed experiment called the EU. This will follow our exit.

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Alan Tonks

Jan 10, 2017 at 16:05

Jeffrey Hurst

Why should they, the opposition is Peter the Painter Corbyn and he is unelectable, so why give a toss.

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Jeffrey Hurst

Jan 10, 2017 at 16:20

That's a valid point, but i believe that Corbyn will be gone before the next election, and Tory strategists will take that on board.

I think the "Golden goose" will produce eggs for most people here

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Alan Tonks

Jan 10, 2017 at 17:32

Jeffrey Hurst

Oh, no Jeffrey only the manipulating politicians and their cronies, the ordinary people do not count.

But if you think that ordinary people’s wishes matter to the people in power, I pity you.

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Jeffrey Hurst

Jan 10, 2017 at 17:56

We'll just have to wait and see

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Alan Tonks

Jan 10, 2017 at 21:17

Jeffrey, indeed we will!!

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Mark Yu

Jan 10, 2017 at 22:01

Jeffrey Hurst,

Care to explain why the £ is down so much and Euro is up so much since the brexit vote, if things will work out as you assert that Eu will fail and Brexit will succeed, both so spectacularly?

For the sake of all the people in UK, my family and myself included, I do hope you are right but I do fear it is a delusion on your part.

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Jeffrey Hurst

Jan 11, 2017 at 12:06

Read a book by Daniel Hannan called "A Doomed Marriage" from Notting Hill Press. Another excellent book on the Euro experiment is written by a Nobel prize winning economist, Joseph. E. Stiglitz. It's called "The EURO and its threat to the future of Europe" You can buy it from Wordery for less than £8. Either will inform and shock you.

On the pound, many economists say that it has been over valued for some time.

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