Banks drive shares higher for fifth straight day ? Latest Market Analysis
Investors who had bought in to the rally of Hargreaves Lansdown shares the previous day were rewarded on Thursday, as they gained a further 18% following upbeat results. The Investment Management group announced an increase of assets under its care of 41% in the year to June 2011, and although much of that could be attributed to growth in the stock market during the same period, the broker also added an impressive number of new accounts. Buyers shrugged off concerns that the company’s business model would become unstuck by additional future regulation to propel the shares 76.5p to 508.5p.
Never out of the news of late, banks were in the spotlight again. Shares in Barclays, RBS and Lloyds gained between 6 and 8 percent, on news that industry reforms were unlikely until after the next election in 2015. Despite a crusade by Business Secretary Vince Cable, backing a plan to segregate retail and investment banking operations, it appeared the reform would come later, rather than sooner.
The FTSE 100 itself started the day in slightly negative territory and spent most of the morning there, but as signs grew that buyers were returning to stock markets and more positive manufacturing data was released in the US, it fought back and eventually gained 24 points, closing at 5419. Technical traders took heart that the index broke through a resistance level of 5405 and stayed there, and will no doubt hope the same level now provides some support.
Elsewhere, bond yields and oil prices remained relatively stable, but the dollar continued its recent strength versus sterling, closing at 1.6174 greenbacks to the pound.
This was posted in Bdaily's Members' News section by John Dance .
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