UK Stocks Experience the Biggest Gain in 5 Weeks

UK stocks have advanced the most in the last 5 weeks, as the benchmark gauge FTSE 100 is now heading towards the longest monthly rally of the same since its inception. A recent data showed that the consumer confidence in US and the housing prices both experienced surge – these two news helped the UK shares big time.

FTSE 100 went ahead by 129.78 points and the same is at 6,784.12 now. The benchmark gauge has experienced the biggest jump since 23rd April on today with a surge of 2%. The benchmark is actually heading towards an advance of 5.5% in May, marking its 12th month of gains. The Central Banks from all over the world have maintained the stimulus efforts, thereby helping UK shares. The broader FTSE All Share Index, on the other hand, jumped up by 1.9% on today. Apart from that, the benchmark gauge of Ireland, ISEQ Index saw an increase of 0.8%.

According to Equities Portfolio Manager of Mittelbrandenburgische Sparkasse, Michael Kapler, the investor sentiment has shifted quite much from where it was in middle of April. Kapler added that the US data is still a driving force when it comes to the markets, however, currently; the rally in UK market has mainly been driven by the support which is given by the liquidity of the Central Bank. This liquidity should not go away soon.

A report in US shows that the consumer confidence has risen in this month to the highest level since February, 2008. The Conference Board’s Index increased to 76.2 and it exceeded the estimates set by the economists. On the other hand, the S&P/Case-Shiller index of property values jumped up by 10.9% in March, if compared with its value in March, 2012. This marks the biggest 12-month gain for the index since April, 2006.

Among companies, the maker of Crestor cholesterol-lowering pill, AstraZeneca saw its shares jumping up by 3% and each share is now priced at 3,530 Pence. The shares are now at the highest price since October, 2006. AstraZeneca has agreed to buy Omthera Pharmaceuticals Inc. for a whopping price of $323 million.

Thanks to the recommendation of Deutsche Bank AG to buy the shares of GlaxoSmithKline, the same saw increase of 2.1%.On the other hand, both Taylor Wimpey and Persimmon added around 3%, thanks to surge of UK home prices.