FTSE 100 on the Brink of a Record‑Burst
The blue‑chip index is hovering at 8,039 points and is eyeing a historic peak by Friday’s close. If it can keep these skies high, the 8,000 mark will become a reality… and confidence is already bubbling.
Positive Vibes for the UK Market
After a string of snide headlines about investors pulling out and companies moving their listings abroad, a little sunshine is a welcome break. The UK’s economy has shrugged off a technical recession, with GDP growth rallying 0.1% in February after a solid 0.3% in January. Good news for Taylor Wimpey and Persimmon – their shares are painting a drier picture of domestic optimism.
What’s Really Behind the Rally?
It’s not all laughter and applause. Rising tensions in the Middle East are pushing oil and precious metal prices up, which lifts many mining and energy stocks. Today’s star performers include:
- Fresnillo – the world’s second‑largest gold miner and biggest silver producer – surged around 5%
- Antofagasta – a major copper producer
- Anglo American – the government’s biggest platinum producer
- BP and Shell – climbing on a backdrop of Brent crude hitting over $90 a barrel
Is the Market Actually Cheap?
Even though the index is close to a record, UK shares are still looking like bargain buys. Current price/earnings ratios sit roughly 37% below the global average, and the long‑term median valuation is still in the green. In other words, the market is ripe for foreign takeovers and home‑grown share buybacks.
Practical Ways to Grab the Deal
Consider investing in UK‑focused investment trusts that trade at discounted prices relative to their portfolio values. Here are a few good picks:
- Fidelity Special Values plc – ‑9.3% discount
- Mercantile Investment Trust – ‑12.6% discount
- Murray Income Trust – ‑11.5% discount
- Temple Bar Investment Trust – ‑9.9% discount
- Henderson Smaller Companies – ‑15% discount
So, if you’re hunting for a pocket‑friendly pick, these trusts might just hit the mark – and never forget: the UK’s market is not at the “pricey” end of the scale just yet.
Keep an eye on the trades. The bell may just strike.
