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Scottish Mortgage leads trust rebound after sell-off

Investment trusts were among the hardest hit by the heavy sell-off that started the week, but have bounced back strongly today.

 
Scottish Mortgage leads trust rebound after sell-off
Investment trusts have bounced back strongly from the market sell-off, buoyed by US markets' fightback from lows yesterday.

The UK stock market posted only moderate gains after a volatile day's trading on US markets saw tumble at the open then flick between gains and losses before rallying higher by the close.

The Dow Jones closed 2.3% higher after Monday's 4.6% fall, while the S&P 500 rallied 1.7%.

The FTSE 100 rose 42 points, or 0.6%, to 7,185, while the FTSE 250 index of 'mid-cap' companies rose 1%. 'Small-cap' stocks were up 0.9%.

Investment trusts rose to the top of all the indices. The FTSE 100's only closed-ended fund, the top-performing Scottish Mortgage (SMT ) investment trust, raced  5.2% higher to 444p, as investors raced to wipe out a rare 5.5% discount to net asset value.

Trust discount hunters were out in force on the FTSE 250 too, sending the Polar Capital Technology (PCT )  trust the top of the index, up 4.3% at £11.12, with the shares having closed 4.2% below NAV yesterday. Rival Herald (HRI ) was close behind, up 3.2% at £11.15.

Independent (IIT ), the small UK investment trust run by former Scottish Mortgage manager Max Ward, jumped to the top of the FTSE Small Cap index, up 6.9% at 654p after the premium on the trust's shares, which has stood as high as 12.7% in the last 12 months, fell to 1.3% yesterday.

Allianz Technology (ATT ) rose 6.3% to £11.75, JPMorgan Smaller Companies (JMI ) was up 4.8% at £10.95 and JPMorgan European (JETI ) jumped 4.8% to 165p.

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