FTSE rally continues as May focuses on creating a minority government
Source - SMW
UK Prime Minister Theresa May said she was aiming to form a minority government with the backing of the Democratic Unionist Party (DUP) after the general election resulted in a hung parliament.
The Conservatives won 318 out of the required 326 seats for a majority.
Despite losing more seats than expected and a blow to her negotiating stance on Brexit, which was due to start soon, Prime Minister Theresa May refused to resign.
The pound weakened following the exit poll on Thursday night, which suggested the Conservatives would fail to consolidate their power.
In response to a 1.6% drop in the pound against the dollar, the FTSE 100 jumped 1% as miners and oil companies continued to gain share price momentum. This was due to a boost in overseas earnings from the currency movements.
Fresnillo (FRES) and Antofagasta (ANTO) dominated the top risers as the stocks rocketed 3.6% and 3.3% higher to £17.25 and 823.2p, respectively.
BP (BP.) rallied over 1% to 461.4p and Shell (RDSB) increased 1.6% to £21.43.
Other top performers that boosted the blue-chip index were Diageo (DGE), HSBC (HSBA) and Vodafone (VOD).
Brent crude oil rose over 1% to $48.39 per barrel. Copper advanced 1% to $5,820 per tonne, but gold reversed 0.8% to $1,265 per ounce.
Following a subdued performance on Wall Street this week, investors were relieved that former FBI director James Comey's testimony delivered no surprises and dismissed the UK election result. The S&P 500 was up 0.4% to 2,444 on Monday.
It was a similar trend for Asia as the possibility of a hung parliament in the UK failed to unsettle the market on Friday.
Japan's Nikkei 225 was 0.5% higher at 20,013, while the SSE Composite in China made smaller gains.
FTSE 100 RISERS AND FALLERS
In corporate news, Centrica (CNA) said the Canadian exploration and production joint venture, CQ Energy Canada Partnership, which it owns a 60% stake in, would be sold for C$722m to a consortium. This would include Can-China Global Resource Fund and Mercuria and pushed the shares 0.5% higher to 199.9p.
Remaining in the utilities sector, SSE (SSE) ticked 1.8% up to £15.19 on its release of its timetable for the payment of the final dividend for the year to 31 March 2017.
FTSE 250 RISERS AND FALLERS
It was bad news for animal genetics business Genus (GNS) as it faced new patent infringement litigation in the US. The company said Inguran, XY and Cytonome/ST, (collectively ST) filed patent infringement proceedings against ABS Global, Genus and Premium Genetics (UK). This was not wholly unexpected by investors as the stock nudged 0.2% to £18.82.
Elsewhere, Kaz Minerals (KAZ) announced an increase in its pre-export financial loan facility to $600m, which the company said was due to strong support from the market.
SMALL CAP RISERS AND FALLERS
Shares in clean water company HaloSource (HALO) plummeted by over 50% to 0.3p on a warning that it would have to start insolvency proceedings. The situation appeared grim as HaloSource might have to suspend trading on AIM if it didn't raise £1.9m by the end of June.
Investors approved of the move to get try and get rid of some senior figures at Conroy Gold & Natural Resources (CGNR). The gold explorer received a request for a general meeting to remove non-executive deputy chairman Seamus Fitzpatrick, finance director James Jones, as well as four other non-executive directors. It also included the request for the appointment of three new directors, sparking a 23.6% rise to 17p.