FTSE lifted to further record high by gold

Market report Emma Newlands

The last full trading session of the year saw London’s top-flight index close at a record high for the second day running thanks to a rally from precious metal stocks.

The FTSE 100 Index rose 14.18 points to hit a new high of 7,120.26, after the traditional Santa Rally helped it reach a record closing figure of 7,106.08 in the previous session. Gold miners Randgold Resources and Fresnillo led the charge on the London market, climbing 295p to 6,415p and 54p to 1,224p respectively. The rally was spurred by the price of gold, which rose 1.3 per cent to $1,156.9 an ounce.

The new record on the London market came amid thin trading volumes and a number of blue-chip stocks going ex-dividend, whereby new buyers no longer qualify for the latest dividend payment. Among the ex-dividend stocks were Dixons Carphone, which dropped 3.2p to 349p.

On the currency markets, the pound regained some strength against the US dollar, rising 0.1 per cent to $1.223, but was down 0.6 per cent against the euro at €1.166.

In UK stocks, housebuilders struggled to make gains despite new data from the Nationwide Building Society showing property values have increased by 4.5 per cent across 2016. Shares in Barratt Developments were off 1.1p at 463.9p and Taylor Wimpey dropped 0.1p to 153.2p.

The biggest risers on the FTSE 100 Index included Hikma Pharmaceuticals, up 35p to 1,857p, and United Utilities, up 13.5p to 907.5p, while the biggest fallers included Ashtead Group, down 37p to 1,572p and Rolls-royce, down 8.5p to 678p. The miner, which dates back to 1911 and releases its fourth-quarter mining production results next month, sparkled as the price of gold increased. There was a drop by the retailer, which earlier this month flagged a “challenging” first half and is set to post its thirdquarter interim results in January.