FTSE Index Up 22%; Lost Decade

Mayank Mehta
31 Dec, 2009
New York City

UK stocks advanced 22% in the year and rebounded 53% from their lows in March. The index lost 31% in 2008 and lost 22% in the decade. Miners, banks and home builders gained. UK home prices increased for the eighth month in a row.

[R]4:00 PM London, 11:00 AM New York – UK stocks advanced 22% in the year and rebounded 53% from their lows in March. The index lost 31% in 2008 and lost 22% in the decade. Miners, banks and home builders gained. UK home prices increased for the eighth month in a row.[/R]

The benchmark index in UK closed higher on the last day of trading and gained 22% in the year. The government stimulus, emergency funding to the banks and the Bank of England printing cash helped liquidity in the financial system.

In London FTSE 100 Index closed higher 15.02 or 0.3% to 5,412.88 and the pound edged higher to close at $1.617 and edged higher to close at €1.125.

The index had dropped to the low of 3,512.09 on March 3 and recovered 53% since then and closed at its high of the year. In short trading session the volume was very light on New Year’s Eve.

World markets in 2009 registered their best gains since 2003 as a rally in commodities and more than $11 trillion in stimulus boost investor confidence and arrest economic decline.

Russia leads the world markets with a rise of 126% followed by increase of 83% in Brazil and 80% in China and India.

Gainers & Losers

Cadbury Plc increased 2.5 pence to 797.50 pence after the Takeover Panel extended by three days its deadline to provide its defense against hostile £10.2 billion bid from Kraft.

Delta plc the engineered steel products fell 1.6% to 137.75 pence.

Graphite Enterprise Trust PLC an investment trust added 2.3% to 300.00 pence.

Home builders gained after Nationwide Building Society reported home prices increased in December, eighth monthly increase in a row.

Barratt Developments increased 3 pence to close at 124 pence and Taylor Wimpey increased 0.7 pence to 38.9 pence.

Banks closed higher. Lloyds Banking Group increased 0.85 pence to 50.69 pence, Barclays increased 3.75 pence to 276 pence and Royal Bank of Scotland increased 0.12 pence to 29.20 pence.

Mining and metals companies edged higher after copper and gold prices edged higher in London and New York. Rio Tinto Plc increased 18 pence to £33.90 and Xstrata Plc gained 9 pence to £11.21 pence.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 78 increased, 21 declined and 3 were unchanged.

BT Group Plc decliners in the FTSE 100 index with a loss of 1.60% followed by losses in Compass Group Plc of 1.55%, in United Utilities Group Plc of 1.45%, in The Sage Group Plc of 0.95%, and in SABMiller Plc of 0.71%.

Land Securities Group Plc led gainers in the FTSE 100 index with a rise of 4.26% followed by increase in Hammerson Plc of 3.97%, in Legal & General Group Plc of 3.53%, in Standard Life Plc of 3.49%, and in The British Land Company Plc of 3.25%.