The FTSE 100 index of leading shares has shown its best results in its 25-year history.
By Chris Farnell
Yesterday the index closed at 5133.9 points, a gain of 21 percent since July. Prior to this quarter the FTSE 100’s best three months had been in the first three months of 1987, when it rose by 19 percent. The index began in 1984.
The shares have begun rising as many analysts are saying that the world economy is climbing out of recession. The FTSE is up by 46 percent since its nadir in March, but is still below the level it enjoyed before the collapse of Lehman Brothers last year.
SHARES FALL
Although the FTSE’s overall performance has improved a great deal over the last quarter, shares dropped 0.5 percent directly prior to closing.
Marks & Spencer lost 3.4 percent to 362.1 pence. Marks & Spencer’s Chairman, Stuart Rose has said he remains “cautious” and expects 2010 to be “a tough year”. Hays dropped 4.2 percent to 104 pence following the ruling that Hays Specialist Recruitment Ltd and five other agencies were to be fined a total of 39.3 million pounds ($63 million).
“Markets don't rise in a straight line and at some point, there will need to be a correction,” equities analyst Richard Hunter said.