The FTSE100 Index (INDEXFTSE: UKX) has seen a strong start to the week, as the countdown to Christmas continues and firms see their shares rise.
On Friday, many firms listed in both the FTSE100 and FTSE250 Index (INDEXFTSE: MCX) saw their shares rally following a strong Conservative majority win, which set the market on fire.
It seems that market optimism has continued into Monday morning, as firms are still seeing their shares boosted.
The FTSE100 Index has bounced 1.98% to 7,499p. 16/12/19 11:08BST.
The FTSE100 has outstripped the FTSE250, which also also seem helped by the optimism on the China US trade negotiations, which have dampened global business all year.
Just four stocks are in red at the time of writing, which are Pearson plc (LON: PSON), Taylor Wimpey plc (LON: TW), Barratt Developments plc (LON: BDEV) and Associated British Foods plc (LON: ABF).
However, both Taylor Wimpey and Barratt Developments saw their shares surge on Friday morning as the media was reporting on PM Johnson’s landslide victory.
Notable rises, come from Glencore plc (LON: GLEN) who hit news headlines after the firm was subject to investigation by the Serious Fraud Office.
Shares in Glencore received a 4.07% boost to 234p, making it the biggest riser in the FTSE100. 16/12/19 11:14BST.
Additionally, British American Tobacco and Bunzl plc saw their shares rise 4.21% and 3.59% respectively on Monday morning.
It seems that the media have dubbed this the “Boris Bounce” as market continue to react keenly to the election victory on Friday.
Neil Wilson, chief market analyst at Markets.com, said housebuilders had been undervalued and rose “on hopes that construction will benefit from the Conservative victory”.
“We should also consider the potential risk that a Labour government could have posed to their profits being removed,Wilson said.
Not a bad board again #FTSE pic.twitter.com/IKanRxQtyz
— Neil Wilson (@marketsneil) December 16, 2019
Additionally, the UK banks continued to receive a notable boost following Fridays surge, the big winner being Barclays PLC (LON: BARC) who’s shares rose 3.46% to 188p.
The FTSE250 has not climbed as significantly, however Sports Direct have seen their shares surge over 21% on an impressive update posted on Monday morning.
Additionally, Royal Mail (LON: RMG) shares have climbed over 5% to 249p in the busy festive period and also end to threats over potential nationalization if Labour did win the election.
It seems that the FTSE250 has still been heavily weighed down by Tullow Oil (LON: TLW) who are still recovering from their crash experienced just one week ago, shares today dropped 9.82% to 61p.
“European markets have got off to a flyer this morning after Friday’s exuberant end to last week,” said CMC Markets’ Michael Hewson.
“With two major tail risks in the rear view mirror, with a US, China phase one trade deal apparently completed, and UK politics in a more stable place than it has been in three years, investors are… embarking on a bit of pre-Christmas shopping,” said Hewson.
