FTSE ends year at record as miners keep climbing
THE FTSE 100 finished December on another high – as it did 12 months ago – and in the process notched up its 23rd record close of the year.
Britain’s premier index of companies has grown by 7.63pc in the past 12 months, up 64.89 points, to 7687.77 yesterday, but still lagged most major rival indexes.
The US in particular has enjoyed stellar returns in 2017 as stocks enjoyed the Trump bump. The Nasdaq is up more than 30pc, the S&P 500 almost 20pc, and the Dow Jones almost 25pc. Germany’s Dax is up 12pc, Japan’s Nikkei around 20pc, and even the French CAC has climbed 10pc.
Still, further UK cheer could be seen on the more domestically focused FTSE 250, which finished yesterday up 0.4pc, or 83.95 points higher, at 20,726.26.
Overall the index was 14.7pc ahead compared with the end of last year.
Its gains yesterday were led by financial publishers Euromoney Institutional Investor, which rose 6.27pc, or 77p, to 1305p, and is up by 13pc this year.
The gains on the FTSE 100 were led by mining stocks such as Fresnillo, which rose 28.pc, or 39p, to 1429p and BHP Billiton, up 1.5pc, or 23p, to 1522.5p. Also making strides was Acacia Mining, which increased 4.2pc, or 8p, to 198.5p.
One of the star performers yesterday was Just Eat, which was lifted 2.8pc, or 21p, to 781p by investors clearly convinced that everyone is now sick of turkey sandwiches and instead ready to turn to takeaways.
The takeaway app has only just been promoted to the FTSE but many are tipping it for another year of solid growth. Chris Beauchamp, a chief market analyst for brokers IG, said: ‘People, understandably, are rather tired of turkey, and Just Eat is ideally placed to benefit. Having been promoted recently to the premier index, the firm is looking forward to more growth next year.’
By contrast it was a disastrous day for Stanley Gibbons as its shares collapsed by 29.6pc, or 1.62p, to 3.88p, after it revealed half-year losses.
The stamp and coin specialist said it could raise further equity and sell more assets to bolster its precarious financial situation.
It posted a £3.5m trading loss in the six months to September 30, down from £3.9m in the same period last year.
Revenue fell 4pc to £16.6m as Stanley Gibbons bemoaned another difficult year.
The firm has been stung by a slowdown in the stamps and collectables market and it was also hampered by a string of failed historic acquisitions.
It is now trying to dump assets and slash costs in an effort to raise cash. To this end, the company said it has exceeded its original target of achieving £10m of annual cost reductions, with monthly employment costs falling by 75pc, while it has banked more than £6m from asset sales.
Yesterday, it said it will need to refinance its debt before May and requires a £5m cash injection to fund growth and to ‘normalise’ working capital requirements.
Chairman Harry Wilson warned that while talks with its bank were constructive there was a risk they would not yield any results under the current company structure.
He added: ‘The board will consider raising further equity or asset sales. However, the board is of the view that whilst alternative finance will be available it is likely to require restructuring of the current indebtedness as part of the solution.’
Earlier this year, Stanley Gibbons put itself up for sale as part of a review being led by finnCap, with the private equity firm Disruptive Capital thought to be interested in a purchase.