The FTSE 100 climbed almost 1 per cent on election day, as polls suggested Labour would win by a hefty margin and investors wait to see what comes next.
London’s main markets edged higher with the FTSE 100 up 0.9 per cent, or 70.15 points, to 8241.26, while the FTSE 250 rose 0.4 per cent, or 80.92 points, to 20,610.34.
Investors shrugged off the potential change of government, which has been largely baked into share prices since the election was called six weeks ago.
But once the dust has settled on the election result, all eyes will be on what Keir Starmer and Rachel Reeves do to get the UK economy moving.
Election day: London’s main markets edged higher with the FTSE 100 up 0.9%, or 70.15 points, to 8241.26, while the FTSE 250 rose 0.4%, or 80.92 points, to 20,610.34
Brick maker Ibstock rose 4 per cent, or 6.6p, higher to 172.2p following a note from RBC, which expects a recovery in housebuilding.
RBC said that the Bank of England is expected to cut interest rates and the housing market is proving to be ‘resilient’.
‘A Labour government could also lead to a significant increase in housing supply,’ it added.
British bank Barclays sold its consumer finance business offering German and Austrian customers credit cards, personal loans and deposits.
It offloaded the division to Vienna-based Bawag Group for £423million, according to reports. Consumer Bank Europe was put up for sale last year.
The deal aligns with Barclays’ strategy to exit European retail banking to cut costs.
In April, the bank sold its mortgage book in Italy as it looks to exit retail banking in the country. In 2022, it offloaded its 7.4 per cent stake in African lender Absa for £538million.
Stock Watch – Image Scan
Security X-ray machine maker Image Scan has won a major contract to supply UK defence contractor NP Aerospace with its ThreatScan device to detect bombs.
The contract, which will start with a three-month trial in September, is expected to be worth around £3million over three years.
Chief executive Vince Deery said it secured the deal ‘against stiff international competition’. Shares jumped 47.2 per cent, or 0.63p, to 1.95p.
‘This transaction will also allow Barclays Europe to focus on its corporate and investment banking and private banking businesses,’ said Francesco Ceccato, chief executive of Barclays Europe.
Shares gained 2.8 per cent, or 6.2p, to 224.35p, just months after it purchased Tesco Bank.
Japan’s Nikkei stock market closed at an all-time high, hitting 40,913.65 – smashing the record set in 1989.
In London, Bunzl was among the top risers after analysts at HSBC encouraged clients to buy the stock.
Shares in the group, which supplies products such as paper napkins and latex gloves, added 2.9 per cent, or 88p, to 3120p.
Workspace, which provides office space for businesses in London, was flat at 580p following a downgrade from Bernstein.
Kenneth Lever, a former director at the car dealer Vertu Motors, becomes chairman at Marston’s – flat at 30.9p – on Monday after William Rucker, who held the job since October 2018, steps down from the pub chain.
Investment firm 3i reported a solid first quarter after it made £49million of income from the start of April to the end of June. Shares dipped 0.7 per cent, or 22p, to 3030p.
Interim profits at specialist bank DF Capital are expected to be higher than forecast, as it expects at least £9million of profit in the first half, up by £4.4million on the entire previous financial year.
New loans surged 17 per cent to a record £709million as it pointed towards signs of ‘financial recovery’ after it recouped some of the money owed by Royal Life, which fell into administration last year.
The shares jumped 24.1 per cent, or 6.5p, to 33.5p.
Retail software provider Itim soared 12.1 per cent, or 4p, to 37p after it signed a five-year multi-million-pound contract with the largest wholesaler in Brazil.
It will provide a price and promotions tool that uses artificial intelligence to Assai, which has more than 300 stores.
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