FTSE hits new high to exceed 7,620 points

Market report Emma Newlands

The FTSE 100 closed at a fresh record high on its first trading day after the Christmas break.

It is the second such record in nearly a week, having pushed above the 7,600 mark for the first time on 21 December to reach 7,603.98 points.

Thatupwardtrendcontinuedyesterday,when London’s blue-chip index rose 28.02 points to close at 7,620.68.

Stocks usually extend their gains in the final trading days of December in what is often referred to as a “Santa rally”.

The phenomenon has been chalked up to factors including investments of Christmas bonuses, lower trading volumes and bargain hunting ahead of an anticipated rise in stock prices at the start of January.

Sterling ended the day mixed, rising nearly 0.2 per cent against the US dollar to trade at $1.339, but falling more than 0.1 per cent versus the euro to €1.125.

In UK stocks, Royal Dutch Shell’s “B” shares were up 16p at 2,487.5p and Barclays rose 0.5p to 202.65p despite warning that earnings would be hit by Donald Trump’s US tax reforms. The pair said the changes, signed into law on 22 December and seeing corporation tax in the US slashed from 35 per cent to 21 per cent, will affect profits as they have to recalculate the deferred tax assets built up on their balance sheets. But both firms expect to benefit in the long run.

The biggest risers on the FTSE 100 were Fresnillo up 47p at 1,397p, NMC Health up 87p at 2,903p, and Old Mutual up 5.5p to 227.8p.

The biggest fallers included Ferguson down 100p at 5,325p, Sky down 15p at 1,000p, and Worldpay Group down 4.6p at 424p. Shares in the office space group soared after it confirmed a takeover approach that analysts say could boost interest in the firm. The oil and gas investment firm said low reservoir productivity at one zone at Weald Basin indicates the zone is “likely not economically viable”.