The FTSE 100 closed up by 2.6% at 7,208.8 on Friday, clawing back ground in a turbulent week for the markets.
Markets have contended with soaring inflation and the prospect of a central bank induced recession in the first half half of 2022 and UK stocks have provided investors with a dismal performance.
“As we approach the halfway point for 2022, investors continue to cross their fingers that markets will have a better second-half than the first six months of the year,” said AJ Bell investment director Russ Mould.
“Only 59 socks in the FTSE 350 index are currently sitting on share price gains year-to-date.”
“It’s when you dig into the data for the fallers that the scope of the market sell-off is laid bare. More than 100 stocks in the index have seen their share price fall by 30% or more, including some names which up to this year had been market darlings.”
Surprisingly, retail stocks performed strongly despite consumer confidence hitting a record low of minus-40 points according to the Growth from Knowledge (GfK) survey. JD Sports Fashion shares gained 4.2% to 119.1p and Next shares rose 1.7% to 5,982p.
Clothing stood out as one of the few categories gaining in the latest retail sales report, with consumer spending up 2.2% last month.
Food sales dropped by 1.6% in May, however the results failed to slow supermarket stocks. Tesco shares increased 3.5% to 255.4p, B&M shares gained 2.1% to 385.4p, Sainsbury’s shares rose 3% to 210.8p and Ocado shares saw an uptick of 1.7% to 870.6p.
Barclays
Barclays shares jumped 3.1% to 158.9p after the banking group confirmed its intended acquisition of specialist mortgage-lender Kensington Mortgage Company for £2.3 billion.
The company mentioned the purchase would allow it to broaden its product offering across the UK mortgage market, grow its client volumes and expand mortgage originations in order to optimise its UK funding base.
“The Transaction reinforces our commitment to the UK residential mortgage market and presents an exciting opportunity to broaden our product range and capabilities,” said Barclays Banks UK CEO Matt Hammerstein.
“The Transaction should generate attractive returns for Barclays over the medium term as the KMC Mortgage Portfolio increases in size through the ongoing origination of new mortgages.”
“We look forward to KMC management and employees becoming part of the Barclays group.”