Thanks to the fact that housing starts in US have climbed up more than the analysts’ prediction, the UK stocks have seen rise as well. The benchmark gauge of UK, the FTSE 100 Index has increased by 0.3% today and has reached to 6120.41. The index actually rebounded from an earlier decline of 0.3%. In 2013, the index has climbed up by 3.8% on a whole. Not only the FTSE 100 Index, but, the broader FTSE All-Share Index has also surged ahead by 0.3%. The benchmark gauge of Ireland, ISEQ Index has jumped up by 0.4% as well. The overall shares being changed hands today was 10% more in comparison to what has been done on an average in last 30 days. Apart from that, the price to earnings ratio of UK also jumped up to its highest level in 2 years.
According to the Head of UK Equities Department of Hargreaves Lansdown, Richard Hunter, the market is currently like treading water because of the heating up of the earnings session in Europe and US. Incidentally, a report published by the US Commerce Department shows that the housing starts have increased at 12.1% annually in last month, far better than expectation of a 3.3% increase. Incidentally, in November, 2012, the housing starts declined by 4.3%.
The biggest gainer in the Broader All-Share index was Home Retail Group. The pretax profit of the company is expected to be around 83 million Pounds. Not only that, but, Home Retail is also expecting to have 300 million Pounds when the current fiscal year ends. This positive news helped the company’s shares as the same increased by 14% to 138.4 pence per share.
On the other hand, Aberdeen Asset Management experienced a slump of 1.8% and currently each share is priced at 384.5 pence. The company recently reported an increase of 3.3% in funds under management. From the start of 2012, Aberdeen stocks have surged by 6.7%. AB Foods, however, saw an increase of 6.7% in its share prices as it reported a surge in the revenue of its budget-clothing business. Thanks to the Spanish unit reaching to an agreement with the unions, International Consolidated Airlines Group shares jumped up by 3.2%. However, Rio Tinto shares suffered a loss of 1.8% as the company announced departure of its chief and also $14 billion of write-downs.