FTSE 100 finishes at five-month high as rally continues

Market report

The FTSE 100 has finished the month at its highest closing price for five months as its recent purple patch continued.

Strong commodity and energy stocks were once again the driving force for a positive session for London traders.

The City’s top index finished the day up 61.05 points, or 0.81 per cent, at 7,573.05.

Chris Beauchamp, chief market analyst at IG, said: “The FTSE 100 continues to outperform its peers and is now up 1 per cent for the year.

“Stronger commodity prices have played a big part in helping the index to best its rivals as indices gird themselves for the final run to year-end, and the lack of a major tech sector has no doubt helped too.

“In tough times, it looks like the solid dividend yields on offer and the index’s undemanding valuation have enticed investors back to the UK market.”

Across the Channel, the other major European markets also had a strong month, with the German Dax gaining almost 8 per cent through November.

The Dax improved 0.29 per cent by the end of the session and the French Cac finished 1.04 per cent higher.

On Wall Street, the main markets were steady at the start of play amid caution prior to Fed chairman Jay Powell’s speech to the Brookings Institute on Wednesday afternoon.

Meanwhile, sterling made strides despite Bank of England chief economist Huw Pill commenting that Brexit has had an impact on the labour market and may have played a part in driving up inflation in the UK.

The pound was up 0.05 per cent against the dollar at 1.195, and was 0.15 per cent higher against the euro at 1.158 at the close.

In company news, handbag maker Mulberry slid after it revealed its UK retail sales plunged 10 per cent in the group’s first half as inflation weighed on customer demand.

Mulberry also confirmed it swung to a pre-tax loss of £3.8m for the six months to October 1 against profits of £10.2m a year ago.

The luxury brand saw shares fall by 23p to 262p as a result.

The biggest risers on the FTSE 100 were Anglo American, up 118p to 3,407.5p, Antofagasta, up 44.5p to 1,408.5p, Endeavor Mining, up 44p to 1,731p, Intertek Group, up 101p to 4,045p, and the London Stock Exchange Group, up 204p to 8,248p.

The biggest fallers on the FTSE 100 were British Land, down 10.4p to 394.3p, Unite Group, down 24p to 922.5p, Tesco, down 5.5p to 227.5p, Segro, down 17.6p to 790.8p, and DCC, down 86p to 4,389p.