Shares roar back after referendum shock

BRITAIN’S biggest businesses have recovered from the initial shock of a vote to leave the EU with a remarkable rebound.

The FTSE 100 yesterday enjoyed its best day for five years as a buying bonanza erased all of the post-Brexit losses. It came after the worst two-day rout in history saw the value of the pound fall to a 30-year low and the markets plunge by 8.7 per cent.

Investors yesterday returned to the British markets for bargains amid hopes that an injection of cash by the Bank of England will stimulate the economy. Mark Carney, the Bank’s governor, has said he is prepared to inject £250 billion into the economy to stabilise the markets.

The FTSE 100 yesterday rose by 3.58 per cent as it hit a two-month high. Trading on the market has risen by 0.5 per cent since the outcome of the referendum was announced.

The fact that Article 50, which triggers the process of leaving the EU, will not be invoked for some time also offered investors some reprieve. Joshua Mahony, an analyst at IG, said: “There is a confidence within the City that perhaps the implications to this vote may not be as immediate nor far-reaching as many initially thought, providing opportunities for bargain hunters to grab shares at a discount.” However, a third of FTSE 100 stocks are still nursing hefty losses of more than 10pc. IAG, the owner of British Airways, is off by 32 per cent, while housebuilders Persimmon and Taylor Wimpey are down by more than 30 per cent. Business, Page 1