FTSE peaks, but short interest holds out for corrections
21 May 2013 London
Image: Shutterstock
The FTSE 100 has hit its highest level since September 2000. The index finished 32.57 points higher at 6755.63, surpassing a peak of 6732 seen in 2007.
Royal Bank of Scotland was the day's biggest riser, with the bank ending up 15.1p higher at 351.9p and Fresnillo fell the most, down 35p at £10.34.
Stock markets globally have seen good gains recently—the US S&P 500 and Dow Jones Index have been trading at record highs, as has Germany's Dax index.
Reasoning behind FTSE’s highs were given as reasonable US consumer confidence figures, as well as the recent news that Japan raised its outlook for the economy.
Some analysts have expressed concern that gains are being propelled by market sentiment rather than earnings, with many warning that investors should expect a correction.
David Lewis, head of EMA stock lending at Sungard’s Astec Analytics, said that in the run-up to the record high for the UK market, the value of stock on loan has fallen by a fifth in the last month.
“However, though many traders have closed out short positions, short interest remains 40 percent higher than the average of the last 12 months, suggesting that a lot of people are betting on a correction."
Royal Bank of Scotland was the day's biggest riser, with the bank ending up 15.1p higher at 351.9p and Fresnillo fell the most, down 35p at £10.34.
Stock markets globally have seen good gains recently—the US S&P 500 and Dow Jones Index have been trading at record highs, as has Germany's Dax index.
Reasoning behind FTSE’s highs were given as reasonable US consumer confidence figures, as well as the recent news that Japan raised its outlook for the economy.
Some analysts have expressed concern that gains are being propelled by market sentiment rather than earnings, with many warning that investors should expect a correction.
David Lewis, head of EMA stock lending at Sungard’s Astec Analytics, said that in the run-up to the record high for the UK market, the value of stock on loan has fallen by a fifth in the last month.
“However, though many traders have closed out short positions, short interest remains 40 percent higher than the average of the last 12 months, suggesting that a lot of people are betting on a correction."
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