UK shares log best intraday performance in almost three weeks on hopes of more stimulus
- UK shares log best intraday performance in almost three weeks on hopes of more stimulus.
- The benchmark indices are about 20% down as compared to their respective year to date highs.
- Aviva, Lloyds, HSBC, and Boohoo were among the prominent price actions on Monday.
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UK shares registered their best intraday performance on Monday in almost three weeks as banks remained hawkish on hopes that more stimulus will be announced to help kickstart the global economy that has been significantly battered by the Coronavirus pandemic.
FTSE 100 and FTSE 250 indices are still roughly 20% down
The British housebuilders including Barratt Developments, Persimmon (LON: PSN), and Taylor Wimpey were upbeat on Monday as Rishi Sunak revealed plans of increasing the threshold for property tax to about £0.5 million. The move, as per the finance minister, is aimed at suspending stamp duty for the majority of homebuyers.
The UK blue-chip FTSE 100 index gained 2.1% on Monday. The commodity heavy index opened at 6,157.30 and closed at 6,286.45 after briefly touching an intraday high of 6,297.73 in the morning session.
The domestically focused FTSE 250 index, on the other hand, climbed by 1.4% on Monday. Compared to the respective year to date highs, both indices are still roughly 20% down. Learn more about the different stock exchanges and stock indices.
Other prominent price actions on Monday
Other prominent price actions on Monday included an about 4% intraday gain in Barratt Developments as the housebuilder valued its forward order book higher than last year and said that early signs of recovery were starting to show in the recently started financial year.
The largest European bank, HSBC (LON: HSBA), ended 6.6% up on Monday and a 1.7% growth was noted in constructions stocks (.FTNMX2350) on a survey that reported the British construction companies to have returned to the growth zone in June for the 1st time since March when the government imposed a countrywide lockdown.
Lloyds Banking Group closed more than 1% up as its CEO announced plans of exiting the role next year. Aviva plc also named Amanda Blanc as the new CEO as Maurice Tulloch resigned on Monday citing family health reasons fuelling a 3.6% intraday gain in the insurer’s stock.
Lastly, Boohoo tanked roughly 23% in the stock market on a media report that revealed that the online fashion retailer’s workers were getting a minimum wage of “only” £3.50 per hour (less than 50% of the national minimum wage) at its Leicester factory.
Prime Minister Boris Johnson also stated on Monday that the government will publish a schedule later this week that will outline when the remaining sectors will be allowed to resume operations in the United Kingdom.
