The FTSE 100 was building momentum on Thursday with London’s leading index grinding out a near 1% gain after the heavy NASDAQ entered a bull market overnight in US trade.
Technology shares were spared the volatility caused by the banking crisis, and in some circumstances were even seen as a safe haven.
Microsoft and Apple – with a combined $3.7 trillion market cap – are up 17% and 23% respectively so far in 2023. Chip-maker NVIDIA is the NASDAQ 100’s top riser this year, adding a whopping 86% since the start of the year.
The NASDAQ’s milestone has grabbed headlines on Thursday and added to improving sentiment around the banking sector.
“Investors continued to bid up stocks as worries about the banking system faded away, with the FTSE 100 having risen nearly 3% since the start of the week. The market was lifted by a broad range of sectors including retail, banking, travel and property,” said Russ Mould, investment director at AJ Bell.
“That suggests confidence is rebuilding among investors who have been shaken by the rapid unfolding of issues concerning a handful of US and European banks, and as expectations for interest rates once again swerved in a new direction.”
The FTSE 100’s top gainers included names such as Ocado and JD Sports which have often led either declines or advances in the index in recent months.
Ocado was up 7% on Thursday and is now 25% higher than the mid-March low.
FTSE 100 ex-dividend
FTSE 100 fallers were dominated by companies trading ex-dividend. Mondi, Smith & Nephew, abrdn, Taylor Wimpey, Aviva and Phoenix Group all traded ex-dividend on Thursday.
Apart from the stocks trading ex-dividend, there were only 10 FTSE 100 companies in negative territory on Thursday at the time of writing.
Decliners included defensive stocks such as BAE Systems, British American Tobacco and Imperial Brands.
