FTSE 100 watch: Footsie builds on gains after Brexit vote

on Jan 30, 2019
Updated: Mar 11, 2020
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The UK benchmark index has soared in today’s session, building on yesterday’s rally, benefitting from a fall in the pound in the wake of the latest Brexit vote. In individual FTSE 100 movers, shares in DS Smith (LON:SMDS) have been in demand on the back of upbeat analyst comments.

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Rally continues after Brexit vote

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As of 13:00 GMT, the Footsie had added 66.60 points to stand 0.97 percent higher at 6,900.53. The blue-chip index has benefitted from a fall in the pound after the UK parliament voted on several Brexit amendments. Proactive Investors quoted Joshua Mahony, senior market analyst at IG, as saying that while it remained to be seen whether the EU would budge on the latest UK efforts to rewrite the Irish backstop, the aversion to a no deal exit Brexit might mean “there will slowly be a softening in stance towards Theresa May’s existing deal in Westminster”.

Reuters meanwhile reports that following the vote  Goldman Sachs nudged up its estimated probability of a ‘no-deal’ Brexit to 15 percent from 10 percent.

Individual blue-chip movers

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In individual FTSE 100 movers, DS Smith’s share price has jumped 4.01 percent to 347.80p after JPMorgan Cazenove reinstated its ‘overweight’ rating on the stock. WebFG News quoted the analysts as saying that the company had “underperformed most of its major peers in paper and packaging over the past 12 months, despite the protection its ‘short paper’ operating model provides to margins”.

Hargreaves Lansdown (LON:HL) meanwhile is underperforming the market, trading 0.30 percent lower at 1,679.50p, following yesterday’s update.

The FTSE 100 was 1.70 percent up at 6,950.33 points as of 13:06 GMT on Wednesday, 30 January 2019.

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