Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

RSA rallies as FTSE gains ground

Published 26/08/2014, 12:14
RSA rallies as FTSE gains ground

By Sudip Kar-Gupta

LONDON (Reuters) - Britain's top equity index rose on Tuesday, boosted by expectations of new economic stimulus measures from the European Central Bank, while a broker upgrade lifted insurer RSA.

The blue-chip FTSE 100 index was up by 0.2 percent, or 12.76 points, at 6,788.01 points by the middle of the trading day.

The London market was closed on Monday, and its gains on Tuesday saw it play catch-up with an advance seen in Europe in the previous session after ECB President Mario Draghi raised expectations of new stimulus measures, such as quantitative easing (QE), in a speech late on Friday.

"We're just playing a bit of catch-up with the rest of Europe. If QE is on the way in Europe, it should help stock markets across the board," said Terry Torrison, managing director at McLaren Securities.

RSA was the best-performing FTSE 100 stock in percentage terms, rising 2.2 percent after Bank of America Merrill Lynch raised its rating on RSA to "buy" from "neutral."

However, shares in copper miner Antofagasta fell 3.8 percent after Antofagasta posted an 11.5 percent decline in first-half core profits.

Some traders said the FTSE looked set for more gains in the near-term.

The index is up by some 4 percent from a low hit more than two weeks ago following a sell-off triggered in June by the worries over the crisis in Ukraine, where Kiev forces have been fighting pro-Moscow separatists.

"The broader technical picture is now implying that upward momentum is such that further near-term gains have become a realistic expectation," said Bill McNamara, technical analyst at brokerage Charles Stanley.

(Additional reporting by Tricia Wright; Editing by Hugh Lawson)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.