FTSE rises as UK votes and polls point to Labour government, while investors wait to see what comes next

The FTSE 100 rose almost 1 percent on election day as polls pointed to a Labour victory by a large margin and investors waited to see what would happen.

London’s major markets rose slightly, with the FTSE 100 up 0.9 percent or 70.15 points to 8,241.26, while the FTSE 250 rose 0.4 percent or 80.92 points to 20,610.34.

Investors dismissed the potential change of government, which had been largely priced into stock prices since the election six weeks ago.

But once the election result has settled in, all eyes will be on what Keir Starmer and Rachel Reeves do to get the British economy moving again.

Brick maker Ibstock rose 4 percent, or 6.6p, to 172.2p after a note from RBC said it expected a recovery in housebuilding.

According to RBC, the Bank of England is expected to cut interest rates and the housing market is proving ‘resilient’.

“A Labour government could also lead to a significant increase in housing supply,” the report said.

British bank Barclays has sold its consumer finance business, which offered credit cards, personal loans and deposits to German and Austrian customers.

The division was reportedly sold to Vienna-based Bawag Group for £423m. Consumer Bank Europe was put up for sale last year.

The deal fits with Barclays’ strategy to withdraw from the European retail banking sector to cut costs.

In April, the bank sold its mortgage portfolio in Italy as it looks to exit its retail banking business in the country. In 2022, it sold its 7.4 percent stake in African lender Absa for £538 million.

Stock Watch – Scan Image

Security X-ray equipment manufacturer Image Scan has secured a major contract to supply British defence company NP Aerospace with its ThreatScan bomb detection device.

The contract, which begins in September with a three-month trial period, is expected to be worth around £3m over three years.

Chief executive Vince Deery said it secured the deal “against strong international competition”. Shares rose 47.2 percent, or 0.63p, to 1.95p.

“This transaction allows Barclays Europe to focus on its corporate, investment banking and private banking activities,” said Francesco Ceccato, CEO of Barclays Europe.

The shares rose 2.8 percent, or 6.2p, to 224.35p, just months after Tesco Bank was taken over.

Japan’s Nikkei stock market closed at a record high of 40,913.65, breaking the record set in 1989.

In London, Bunzl was among the biggest gainers after HSBC analysts urged clients to buy the stock.

Shares in the group, which supplies products such as paper napkins and latex gloves, rose 2.9 percent, or 88p, to 3,120p.

Workspace, which provides office space to businesses in London, remained steady at 580p after a downgrade from Bernstein.

Kenneth Lever, a former director at car dealer Vertu Motors, will become chairman of Marston’s, which charges 30.9p a floor rate, on Monday after William Rucker, who has held the role since October 2018, stepped down from the pub chain.

Investment firm 3i reported a solid first quarter after generating £49m in revenue from the start of April to the end of June. Shares fell 0.7 per cent, or 22p, to 3,030p.

Specialist bank DF Capital is expected to report better-than-expected interim profits, with a minimum of £9m expected for the first half of the year, up £4.4m on the full-year.

New borrowings rose 17 per cent to a record £709m, signalling signs of ‘financial recovery’ as Royal Life claws back some of its debts after going bust last year.

Shares rose 24.1 percent, or 6.5p, to 33.5p.

Retail software supplier Itim rose 12.1 percent, or 4p, to 37p after signing a multi-million pound, five-year contract with Brazil’s largest wholesaler.

It will provide Assai, which has more than 300 stores, with a pricing and promotions tool that uses artificial intelligence.

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