The UK stock market bounced back this morning as the UK blue chip stock index was up 16.01 points, or 0.3%, at 5,884.17, with Bank of Japan announcing injection of funds into its economy, boosting the overall economic confidence.
The asset purchases in Japan come after the central banks from the US and Europe infused funds into their economies to stop the slowdown in global growth and puncture the euro zone debt crisis.
The top gainer on the UK stock exchange was Kazakh copper miner Kazakhmys, which rose 3.1% as the mining sector surged 1.3%. Mid-cap platinum producer Lonmin climbed 9%, after the striking miners settled for a pay hike of up to 22%, bringing a closure to a six-week strike.
The UK stock market is experiencing six-month highs due to the central banks initiatives, which could prove to be a political platform that would help erase doubts regarding the global economic outlook. The stock markets relative strength index is also indicating a bullish trend and analysts at Trading Central recommend to keep taking long positions on the index above 5,835 with targets at up to 5,960.
Britain’s Smiths Group, whose products range from bomb detectors to bearings and seals, gained 2% after it announced full-year profit rose 7%. United Utilities added 1.1% with traders citing newspaper reports that a Middle East sovereign wealth fund might be willing to pay up to 950 pence-per-share for the firm.
Aviva, G4S and Petrofac declared ex-dividend on Wednesday, affecting investors who will no longer qualify for the latest dividend payout.