The UK stock market today pushed into the positive territory reaching 6,297.12, up 0.32%, posting better gains than yesterday, with the help of banking sector results as Barclays’ strategic review was well-received by the investors. More support came from credit ratings agency Standard & Poors which changed its outlook on Ireland from ‘negative’ to ‘stable’. The move reflects its expectation that the exchange of promissory notes for longer-term government bonds significantly reduces the Irish government’s debt-servicing costs and refinancing risk, and supports medium-term fiscal consolidation.
The UK CPI inflation rate remained unchanged for fourth month in a row at 2.7%, in line with expectations. Despite the announcement of 3,700 job cuts in Barclays, the stocks rose owing to the hope given by CEO Antony Jenkins’ turnaround strategy. Sector peers Lloyds and RBS were also in the green this morning. JP Morgan issued a note to BAE Systems investors, stating that the defence giant is facing major structural problems, and is likely to underperform peers over the next 12-24 months, subsequent to which the stocks plunged.
Contrarily, Rolls-Royce shares shot up after the company was adjudged the “best-quality company in the sector”. Mismanagement of the Olympics contract has spelled doom for G4S which posted overall loss of £70m, resulting in plummeting stocks. Xstrata and Glencore remained unwanted on the still-awaited merger news. Oil and gas giant Tullow Oil was trading in positive territory after its partner Kosmos Energy submitted plans for three discoveries on the Deepwater Tano Block offshore Ghana.
The top gainers in the UK stock market today are Barclays (lon:BARC) 315.95p +4.79%, Lloyds Banking Group (lon:LLOY) 54.72p +3.73%, Royal Bank of Scotland Group (lon:RBS) 349.00p +2.56%, Morrison (Wm) Supermarkets (lon:MRW) 261.30p +2.03%, ARM Holdings (lon:ARM) 918.00p +1.60%, Sage Group (lon:SGE) 339.60p +1.56%, Aberdeen Asset Management (lon:ADN) 405.50p +1.32%, Associated British Foods (lon:ABF) 1,776.00p +1.25%, Carnival (lon:CCL) 2,616.00p +1.20%, and BT Group (lon:BT.A) 270.00p +1.09%.
The top losers in the UK stock market today are BAE Systems (lon:BA.) 330.50p -1.78%, GKN (lon:GKN) 254.00p -1.51%, Evraz (lon:EVR) 291.90p -1.39%, Antofagasta (lon:ANTO) 1,118.00p -1.32%, Randgold Resources Ltd. (lon:RRS) 5,785.00p -1.03%, Glencore International (lon:GLEN) 382.55p -1.00%, Xstrata (lon:XTA) 1,149.00p -0.99%, Fresnillo (lon:FRES) 1,644.00p -0.96%, Reed Elsevier (lon:REL) 687.00p -0.94%, and Amec (lon:AMEC) 1,092.00p -0.91%.