The FTSE 100 surged on Monday morning following a disappointing end to the previous week. The index of the UK’s top companies rose by 1.89% to 6,605.73 soon after the trading day commenced.
Richard Hunter, head of markets at Interactive Investor, said: “The FTSE 100 is seeing a relief rally following a poor end to last week.
“The increase in the oil price is a factor, and as an index increasingly being seen as providing value, international investors may be tempted to buy into any strength. The index remains ahead by 2.0 per cent in the year to date, with the state of the nation likely to be revealed later in the week when the terms of the Budget are revealed.”
The surge in the FTSE 100 comes amid expectations that Rishi Sunak will upgrade forecasts on the UK’s economic recovery from Covid-19.
FTSE 100 top movers
Home builders Persimmon (5.48%), Taylor Wimpey (5.04%) and Barratt Developments (4.5%) are the biggest risers on the FTSE 100 at early morning trading.
Down at the bottom, Bunzl (-1.99%), Informa (-1.63%) and B&M European Value Retail (-0.037%), were the only three companies to lose ground on the FTSE 100 index.
Bunzl’s (LON: BNZL) currency adjusted profit before income tax is up by 25.6% to £715.6m as demand for supplies rose during the pandemic. The distribution company saw its adjusted revenue climb by 9.4% compared to the year before, up to £10.1bn.
The FTSE 100 company announced a dividend of 54.1%, up 5.5% from the year before, while basic earnings per share rose by 22% to 128.8p. Shortly after market opening, Bunzl’s share price is down by 3.13% to 2,167p per share.
Reach PLC (LON:RCH) announced a 14.6% fall in revenue to £600.2m for the year. Revenue from the media organisation’s digital operations rose by 10.6%, while print fell 18.9%.
The group – which operates the Daily Mirror along with a host of other publications – put its performance down to the impact of the coronavirus pandemic.