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FTSE 100 bucks up as US indices head north


  • FTSE 100 closes over 88 points higher
  • FTSE 250 gains too
  • Premier African also in demand on Zulu speculation

5pm: FTSE closes ahead

FTSE 100 closed the first day of the new trading week firmly higher after a choppy start, while education publishing giant Pearson () was one of the top gainers.

Britain’s blue-chip benchmark added over 88 points at 6,719, while midcap FTSE 250 also did well, adding nearly 245 points at 21,210.

In the USA, the Dow Jones was “closing on a 1200 point gain from Thursday’s lows”, noted trading firm IG Index, supercharged by hopes that Friday’s headline improvement in the jobs numbers marked a turning point for the US economy’s battle with Covid, and on expectations that the stimulus bill will help accelerate the process.

“Pearson’s preliminary full year numbers received an initially lukewarm welcome with the shares falling sharply after the company reported a 10% decline in full year revenues. This decline proved to be somewhat short-lived with the shares rebounding strongly from one-month lows shortly afterwards to rise to the top of the pile,” noted Michael Hewson, analyst at CMC Markets.

“The 10% decline is still an improvement on the 17% fall seen in the first half, however it still points to disappointment as profits came in below expectations. It’s true to say that the company’s revenues experienced a bit of a dent as a result of the pandemic, due to the closure of some schools and its testing centres but you would have expected to see a bigger improvement on the digital side.”

On Footsie, Pearson shares added 6.42% on the day to 808.80p, beaten to the top spot only by Rolls Royce (), which gained 7.32% to 116.50p.

3.55pm: Late spurt by the Footsie

After moping around most of the day like an anguished teenager, the FTSE 100 has put on a late spurt, taking its lead from US markets

London’s index of leading shares was up 57 points (0.8%) at 6,687.

“The main story at the moment for equities is not so much the movement in global markets overall but the moves beneath the surface. Most notably, there has been a significant rotation away from growth stocks, which were the big winners last year and indeed over the last decade, into cheaper unloved value stocks,” said Rupert Thompson, the chief investment officer at asset management firm, Kingswood.

“Since ‘vaccine’ day last November, which provided the initial catalyst for the rotation, value has gained 18% versus 4% for growth. Echoing this trend, the financial and energy sectors have gained as much as 25% over this period vs 8% for the tech sector. Similarly, the UK has gained 14% compared with a 4% increase for China,” he added.

Umuthi Healthcare Solutions PLC (LON:UHS), which only listed last Thursday at 30p a share, was comfortably the top risers, soaring 433% to 160p.

The medicines provider is launching a proprietary app that bypasses traditional distributors and trades directly with healthcare suppliers. Umuthi currently has its main operations in South Africa but is looking to expand organically and by way of acquisition in the regions of Africa and Europe.

The share price movement even put Premier African Minerals Limited () in the shade.

Premier’s shares surged 69% to 0.2025p prompting the company to put out a stock market statement about the share price movement.

The company noted that the moves came in tandem with on-line speculation regarding the status of its exclusive prospecting order applications in respect of Zulu Lithium Private Limited asset.

There has been a publication in the Zimbabwean National Assembly Hansard Volume 47 Number 28 relating to the general status of all exclusive prospecting order applications and this appears to have sparked interest in the shares among message board lurkers.

3.20pm: Proactive North America headlines:

Altamira Gold Corp () (OTCPINK:EQTRF) () reveals four high-grade gold and silver vein structures at its Apiacas project in…



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