The FTSE 250 index was up 3.9% in the first hour of trading in reaction to a convincing victory for the Conservative Party in yesterdays General Election.
The index is home to far more UK-focused companies than its big brother, the FTSE 100, and three stocks – Stagecoach Group PLC (LON:SGC), Savills PLC (LON:SVS) and Bellway PLC (LON:BWY) – are up by more than 10% this morning, boosted by the removal of uncertainty n the home front now that the UK has a government with a comfortable majority.
Stagecoach, the transport operator, was the top performer with an 11.7% rise to 147.6p as the admittedly slight prospect of the railways being renationalised disappears into the distance.
Savills, the estate agency group, joined a plethora of housebuilding companies on the charge as traders took the view that the uncertainty over Brexit that has slowed the housing market in Britain will now recede.
Featuring prominently among the few FTSE 250 stocks to fall back were trusts that invest overseas, such as Worldwide Healthcare Trust PLC (LON:WWH), Baillie Gifford Japan Trust PLC (LON:BGFD) and Fidelity China Special Situations PLC (LON:FCSS).
Proactive news headlines:
Hurricane Energy PLC (LON:HUR) expects it will have brought in some US$165mln of revenue by the end of 2019, thanks to the continuing successes of the Lancaster field early production system (EPS). It comes as the Lancaster EPS is seen performing strongly which, for investors, is in contrast to the disappointing end to the 2019 drill campaign at Hurricanes 50% owned Greater Warwick Area.
Anglesey Mining PLC (LON:AYM) said in its half-year results statement it remains encouraged by the continued support for iron ore prices. The period under review – the six months to the end of September – saw consultant QME carry out an agreed programme of design, engineering and optimisation studies relating to the future development of the Parys Mountain zinc, copper lead project, located on the island of Anglesey in Wales.
Ferro-Alloy Resources Limited (LON:FAR) has expanded its existing vanadium concentrate processing operations as it continues financing discussions to develop its Balasausqandiq project in Kazakhstan. The company said its production in October had also reached a record of 18.2 tonnes of concentrate and it is expecting a “significant increase in monthly production” from mid-December as the new equipment becomes fully operational.