Aggreko Contract Helps FTSE Move Higher: Index Spread Trading News
Financial Market Comments from Anthony Grech, Market Strategist, IG Index.
In mid-morning trading, shares in London have made another positive start.
In early trading support services business Aggreko is the best blue chip performer, up 2% on the day, following yesterday’s announcement of a £30 million World Cup contract win.
This has pushed the share price out to all time highs once again; it has risen by more than 10% in less than a week.
Traders’ expectations are running high ahead of the full year results due on Thursday.
The biggest loser on the day is again Prudential, with the market still feeling that it is paying top Dollar for AIG’s Asian business.
Investors are a little wary, to say the least, of the rights issue with which the Pru plans to pay for it.
Today’s strength in the FTSE adds to the recovery that has been in place since early February.
The move through 5400 in recent days is another hurdle passed and leaves us looking at the highs for the year, with 5600 as the obvious target.
It could well be a bumpy ride but for now investors seem happy to position themselves for more gains.
Looking ahead to US markets, at the moment we are expecting the Dow Jones to start off unchanged this afternoon.
Spread betting carries a high level of risk to your capital. You may lose more than your initial investment. It may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.
Good Luck!
DB
The above comments do not constitute investment advice Clean Financial accepts no responsibility for any use that may be made of them.
Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.
0 comments
There are currently no comments. Please start by filling out the form below.
You must log in to post a comment.