Boost for savers as stocks gain £185bn since Brexit

IT was the last day of trading before Christmas and exactly six months since investors waited with bated breath for the outcome of the EU referendum.

As the results trickled in that night, few would have predicted that the stock market would now be a triumphant 730 points higher than it finished on June 23, the day of the Brexit vote.

The FTSE 100 index edged up just 4.49 points, to a ten-and-a-half week high of 7068.17 in yesterday’s short half-day of trading.

But it means some £185bn has been added to the value of Britain’s leading companies since the vote to leave the EU.

It’s a far cry from the Armageddon that was forecast.

The Footsie fell nearly 6pc in the two days after the referendum.

But it is now up some 18pc since its post-referendum low on June 27, with £274.4bn added to the value of the UK’s blue-chip index.

Russ Mould, investment director at AJ Bell, said yesterday’s gains ‘will hardly have had the champagne corks popping’ but added that the stock market’s ‘resilience this year has certainly been cause for celebration’. He went on: ‘It is remarkable that the index has reached 7000 by Christmas, given everything that has been thrown at it this year.’

He added: ‘Weak oil, wobbly European banks, the Brexit vote, Trump’s surprise win, rises in US interest rates and a slide in bond prices have all largely bounced off the index.

‘The key question is whether it can set new highs next year.’

In June, up to 40pc was wiped off the value of some housebuilders and property companies.

Yesterday, Land Securities was among the highest risers of the day, up 2pc, or 21p, to 1070p, while

Hammerson climbed 1.6pc, or 9p, to 569p. Custodian Real Estate

Trust also edged up after it announced the acquisition of a new property in Liverpool for £6.4m. The 34,686 sq ft building holds a restaurant and health centre and currently pockets almost £475,000 in rent a year. Shares gained 0.9pc, or 1p, to 107.75p.

Logistics business Dart Group leapt after it stepped up its growth plans with the purchase of four new aircraft. Dart, which owns the airline Jet2, had already agreed to purchase 30 737-800NG aircraft from Boeing last year.

The business wants to increase its leisure travel business and replace some of its fleet.

Dart said the deal was worth around £314m at list prices, but added it had negotiated ‘significant discounts’. Shares took off 3pc, or 14.5p, to 503.5p.

Security and facilities management firm Mortice is to issue more shares to raise £2.3m. Mortice wants to use the money to pay down some of its debt which has a higher interest rate.

The company said reducing the debt would help it speed up the development of its surveillance business. Mortice said it is expecting record half-year revenue of £65m, up by 57pc on last year after major contract wins with Amazon Warehouse, Nokia, JPMorgan and the University of Hertfordshire. Shares leapt 3.3pc, or 3p, to 93.5p. Takeover talk sent NetDimensions shares higher on the day. The computer software firm said it was now in advanced discussions after being approached in October.

NetDimensions had unveiled a strategy back in 2013 to invest to grow revenues while operating at a loss. Chief executive Jay Shaw said he was pleased to have nearly doubled revenue since then. Sales for the year are expected to be higher than £21m, with earnings of around £1.6m. Shares surged 7.5pc, or 5p, to 72p.

New contracts gave e-procurement software firm EU Supply a boost. The business said an existing customer had enhanced its contract with the firm, which should add £100,000 to revenue. EU said it had landed several smaller contracts in Scandinavia, too, with clients including a leading renewable energy group and the Danish ministry of employment. Shares gained 2.1pc, or 0.25p, to 12p.