CFD Traders Diary
India Sensex Market determines the direction of the FTSE100
18/5/2009
India's stock market has without doubt had influence on the direction of other stock markets from time to time, but until it hasn't carried sufficient strength to turn other markets or change their direction. Today all that changed as the Sensex in Mumbai rocketed 17% after the Congress Party won a clear mandate at the General Election. The massive jump by the Sensex triggered circuit breakers, suspending trading, but the knock on effect prompted a 1% rise in the UK FTSE100 after pre market and early trading indicated a 1% fall. And shares in India-focussed miner Vedanta (VED) jumped 3%.
Ironically, one of the other main market moving events of the day so far has been the departure of Lloyds Banking (LLOY) Chairman Sir Victor Blank. Sir Victor was clearly deeply unpopular; his departure promoted a 5% jump in Lloyds Banking Group shares, and this sentiment also drove other sector prices higher, with typical gains of between 2% - 3%.
On the corporate news front, advertising group Aegis (AGS) reported a 6.5% hike in annual revenues, flattered by comparative exchange rate changes, although shares fell 5% as traders chose to strip out the benefits of the weak Pound.
And once again, no recovering market would be complete without the weekly line up of cash call candidates. Two groups were in focus today. Storage company Big Yellow (BYG) asked for nearly £30m via a placing, while property group Great Portland (GPOR) is reportedly looking for some £200m to fund a program of bargain hunting in the real estate area. Rather surprisingly Big Yellow shares were up over 10%, with investors having seemingly factored in the cash call, while Great Portland shares held flat after an early dip.
