London close: FTSE closes at another record high

The FTSE 100 closed at another record high on Friday as traders brushed off a batch of weaker-than-expected economic data.

The index rose 0.62% to 7,337.81 points, the 14th consecutive day of gains and the sixth week of increases.

“It isn’t often that we can say the British are more positive than the Americans, but today has seen the FTSE 100 confound all doubt to push into yet another record high,” said IG’s Joshua Mahony.

“After two weeks of straight gains, there are many calling this market overbought and stretched. However, just as we saw JPMorgan benefit from the bullish post-election market conditions, it is likely we will see UK banks enjoy a strong beginning to 2017 given the recent FTSE exuberance.”

US lender JP Morgan Chase shares gained after lender revealed that fourth quarter income for the corporate and investment banking division jumped 96% from last year to $3.4bn, boosted by strong activity after President-elect Donald Trump's electoral victory, while the retail sector was more subdued.

Similarly, the Bank of America rallied after its earnings were also boosted by the Trumpflation trade with a 43% rise in income to $4.7bn. The lender also said it would buy back £4.3bn of its shares, more than the $2.5bn it had said earlier.

Among London-list corporate stocks, Barratt Developments saw its shares recover from the previous session when it reported a 6% drop in annual house sales following a sharp fall in business in London.

Fellow housebuilders Taylor Wimpey and Persimmon also edged higher after a review from Halifax showed that the number of first time buyers had risen to an all-time high since before the 2008 financial crisis.

ITV was another riser after Goldman Sachs added the buy-rated stock to its Conviction List, saying its is one of the most likely M&A candidates in its coverage, as it took a look at the European media sector.

Pharmaceutical shares, including Hikma and Shire, recovered from Thursday’s slump after US President-elect Donald Trump said he would crack down on high drug prices.

Burberry was a high riser after confirming that Julie Brown will be taking on the role of chief operating and financial officer on 18 January 2017.

SIG surged after it reported an 11.2% rise in group sales in the year to the end of December, with investors seemingly relieved the company didn’t issue another profit warning.

In contrast defence stocks were the biggest fallers, including Rolls Royce and BAE Systems.

Dunelm was on the back foot after Jefferies downgraded the homewares retailer to ‘underperform’ from ‘hold’ and cut the price target to 650p from 700p.

Pennon slumped after Credit Suisse downgraded the environmental utility infrastructure company to ‘underperform’ from ‘neutral’ and lowered the price target to 680p from 800p.

On the data front, the Commerce Department revealed US retail sales 0.6% in December, just shy of the 0.7% growth expected and following an upwardly revised 0.2% increase in November.

Naeem Aslam, chief market analyst at Think Markets, said the figures showed consumers are reluctant to spend amid the uncertainty of Trump’s leadership.

Meanwhile, the University of Michigan’s consumer confidence index dipped to 98.1 in January from 98.2 the previous month, missing estimates for 98.5.

In China, the trade surplus narrowed to $40.82bn in December from $44.61bn, surprising analysts who had expected a surplus of $47.55bn. Exports declined 6.1% on the year in December, compared to forecasts for a 3.8% fall and the previous month’s 1.6% drop. Imports rose 3.1% in December, more than the 3% increase expected and after a 6.7% gain in November.

On this side of the pond, the Bank of England said demand for bank lending among small and medium-sized British firms continued to slump in the last three months of 2016 amid worries about Brexit.

However, demand for bank borrowing by large companies remained unchanged during the period, according to the Bank’s quarterly Credit Conditions Survey.

Market Movers

FTSE 100 (UKX) 7,337.81 0.62%
FTSE 250 (MCX) 18,371.94 0.37%
techMARK (TASX) 3,425.30 0.71%

FTSE 100 - Risers

Barratt Developments (BDEV) 516.00p 3.61%
ITV (ITV) 208.60p 2.76%
Kingfisher (KGF) 353.00p 2.56%
St James's Place (STJ) 1,085.00p 2.46%
Shire Plc (SHP) 4,661.50p 2.34%
Burberry Group (BRBY) 1,611.00p 2.29%
Standard Chartered (STAN) 717.40p 2.18%
Hikma Pharmaceuticals (HIK) 1,893.00p 1.99%
International Consolidated Airlines Group SA (CDI) (IAG) 488.70p 1.98%
Sainsbury (J) (SBRY) 264.60p 1.85%

FTSE 100 - Fallers

Rolls-Royce Holdings (RR.) 661.50p -2.29%
Marks & Spencer Group (MKS) 339.10p -1.68%
Randgold Resources Ltd. (RRS) 6,710.00p -1.25%
Smurfit Kappa Group (SKG) 2,129.00p -1.11%
Paddy Power Betfair (PPB) 8,645.00p -1.09%
BAE Systems (BA.) 611.50p -0.97%
Capita (CPI) 515.50p -0.67%
United Utilities Group (UU.) 890.00p -0.67%
British Land Company (BLND) 618.00p -0.64%
Fresnillo (FRES) 1,413.00p -0.63%

FTSE 250 - Risers

SIG (SHI) 108.90p 16.10%
Grafton Group Units (GFTU) 586.00p 8.42%
International Personal Finance (IPF) 172.00p 5.01%
Daejan Holdings (DJAN) 6,275.00p 4.17%
Ascential (ASCL) 291.30p 3.37%
Genus (GNS) 1,783.00p 3.06%
Travis Perkins (TPK) 1,465.00p 3.02%
Indivior (INDV) 309.20p 2.32%
Spire Healthcare Group (SPI) 314.90p 2.14%
Vesuvius (VSVS) 422.00p 2.11%

FTSE 250 - Fallers

Dunelm Group (DNLM) 698.00p -5.93%
Nostrum Oil & Gas (NOG) 457.70p -4.41%
Pennon Group (PNN) 776.50p -4.02%
Ferrexpo (FXPO) 131.40p -2.67%
Capital & Counties Properties (CAPC) 275.80p -2.41%
Just Eat (JE.) 517.50p -2.36%
AO World (AO.) 157.20p -2.34%
Hunting (HTG) 624.00p -2.04%
Electra Private Equity (ELTA) 4,651.00p -1.98%
Fisher (James) & Sons (FSJ) 1,589.00p -1.81%