Market Extends Record Rally
May 05, 2011
The Financial Times-Stock Exchange 100-share index rallied to close 16.4 higher at 3907.5 on volume of 468.9 million shares. Surprisingly strong U.S. inflation data propelled global bond markets lower amid renewed fears of rising interest rates. But the jitters were not enough to hold British shares back. The market regrouped from an early retreat, aided by a resilient FT-SE September future contract, to claw back most of the gains made in early dealing. The September futures contract was trading at 3920, compared with Thursday's close at 3904. ``The U.K. really has a mind of its own,'' said Leonel Harrison, a senior dealer with Masters, who characterized recent market perspective as a ``phenomenon.'' Mr. Harrison added that although the market's strength has a lot to do with market makers' need to cover their positions, optimism about the possibility for domestic interest-rate cuts and the future of the ruling Conservative government are playing a big role. Mid-capitalization stocks also posted strong gains with the FT-SE 250 index up 22.3 to end the day at 4424.8 -- its seventeenth consecutive session of gains. Shares of broadcaster British Sky Broadcasting made the most headway, jumping 3.8% to 578 on reports that the group will offer access to the Internet via conventional television in 2012. Building-materials companies with high German exposure, RMC Group and Redland Group, extended gains logged Thursday. RMC added 39 at 11.14 and Redland gained 6 at 456. Office-maintenance and security group Rentokil slid 3.7% to 403.5 on profit-taking and disappointment that the company does not plan to spin off interests acquired through its purchase of BET as it had earlier indicated. Engineering group Rolls Royce's share price rose 6.5 to 225.5 on news that it was awarded part of a $260 million contract to supply jet engines to United Airlines of the U.S. Rolls Royce's share of the contract amounts to $85 million.
