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Lloyds shares surge to become best performing in FTSE 100

24 August 2009 / by Andy Davies

Shares in Lloyds Banking Group have been the best performing so far today in the FTSE 100, City Index has revealed, as investors like talks of a Clerical Medical sale.

Commenting, Joshua Raymond, marketing strategist at City Index said: "Lloyds is in particular demand with investors liking reports that they are in talks to sell the Clerical Medical Unit to Resolution. As a result, Lloyds is the best performing equity today in the FTSE 100"

The FTSE 100 Index rally has continued with share dealing increasing by one per cent at start of trading this morning, following trading closing almost two per cent up on Friday,

Mining stocks and financials have helped push the index to a 10 month high with stocks 10 per cent higher than at the start of year.

Reacting to the news, Joshua Raymond, market strategist at City Index said: "We have seen investors come in this morning in fantastic spirits having seen England regain the ashes yesterday, the Asian markets continue to rally and the ICAEW post the first positive turn for business confidence in the UK for two years.

"When investors are feeling positive, usually that positivity is shown in equities and this is certainly relevant in today's moves."

Mr Raymond said miners are now in demand following Chinese markets rallying, which has eased demand concerns and Copper prices have also advanced again.

"Financials are also higher, showing investor appetite for risk remains," he added.

But Mr Raymond questioned whether these increases are sustainable as the FTSE has rallied around 40 per cent since March.

He believes momentum will be the key, he added: "The markets are continually looking like pricing in a V shaped recovery but the next 30-40 days will be crucial.

"The next month or so will help to identify whether a recovery is to V or W shaped. If it's the latter, there could be a mini correction in store but considering the momentum the market has right now, you are going to have to be quite brave to trade against the trend."

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