Shares of banks, utilities, transport companies and property firms were among the biggest winners in Friday’s UK stock market rally on the back of the resounding Tory victory in the UK general election.
Clydesdale Bank owner Virgin Money UK soared almost 20%, Perth-based transport giant Stagecoach Group leapt 16%, Royal Bank of Scotland rose 9%, and Perth-based energy giant SSE jumped 8%.
Glasgow-based packaging and distribution firm Macfarlane Group rose 6.5%, Aberdeen transport firm FirstGroup rose 4%, Edinburgh’s Cairn Energy rose 3.5%, and Glasgow-based Weir Group and Aberdeen’s Wood plc both rose about 3%.
Edinburgh-based aviation services company John Menzies plc jumped 4.5%, Irn-Bru maker AG Barr rose 2.5%, and Edinburgh-based Standard Life Aberdeen rose about 2%.
Emma Wall, head of investment analysis at Hargreaves Lansdown, said: “Banks, property and utilities are benefiting from the Boris bounce.
“As expected, it’s the domestically focused stocks that have done well this morning from the Boris bounce.
“UK banks Barclays, Lloyds and Royal Bank of Scotland have jumped – shrugging off that Moody’s downgrade of last week.
“The property and infrastructure stocks are also up in mid-morning trading, from housebuilders Barratt Developments and Taylor Wimpey, to real estate investment trust British Land.
“The biggest winners of the morning are the utilities stocks. Now that the spectre of nationalisation has been banished Centrica, SSE and United Utilities have bounced as much as 10% – rewarding those brave shareholders who backed them through the Corbyn manifesto threat.”