It’s been another day of record highs for European markets with the EuroStoxx600 posting another record peak, along with the FTSE250, which has undergone a decent surge in momentum since the end of last month.
Since the index closed in March at 21,518 the UK mid-cap has risen just under 5%. The FTSE 100 has also had another decent session, hitting its highest level since February 2020, as it looks to close in on the 7,000 level.
While other major indices have led the way in posting record highs on a fairly regular basis, there are increasing signs that UK stocks are finally finding favour with investors as the UK economy embarks upon the next stage of its economic reopening.
We’ve already seen the FTSE 250 make record highs, which leaves the FTSE 100 as the serial laggard with a lot of ground to make up, given it is still well below last year’s peaks of 7,689.
GlaxoSmithKline shares are leading the blue-chip index higher on reports that Elliott Management have built up a multibillion-pound stake in the business.
This activist shareholder has a track record of shaking things up and Glaxo shares have seriously underperformed the wider market for several years. Earlier this year they hit their lowest levels in a decade, with the company being increasingly left behind by its peers AstraZeneca and Pfizer. The company is in the midst of a restructuring program with the consumer business set to be split away from the wider pharmaceuticals business, and some shareholders may be starting to get restless.
Other decent performers have been the likes of Kingfisher, which was on the receiving end of a price target upgrade from Citigroup, while we also saw a decent trading update from Travis Perkins.