Market Report: FTSE 100 gets some Christmas cheer

Better late than never for the stock market bulls who finally received some festive cheer in the form of a Santa Rally. Trading screens were awash with green as the FTSE 100 flew up 157.88 points, or 2.6 per cent, to 6,240.98, with the bombed-out stocks of 2015 – the mining and oil companies – lifting the blue-chip index.

Glencore and Anglo American, the year’s biggest losers, were the Footsie’s best performers, up 7.25p to 93.09p and 26.85p to 323.35p respectively. They have still crashed 69 per cent and 73 per cent respectively this year.

“The lack of any tangible drivers shows that the silly season is back upon us as low volume drives significantly greater price movements,” said Josh Mahony, an analyst at the spreadbetting firm IG, referring to the volatile market in August and September, when the Footsie shifted by more than 1 per cent on a daily basis.

The surge for stocks in December traditionally happens in the middle of the month, and with just two whole trading days and two half-days left in the calendar, a continued rally would still be unlikely to prevent the FTSE 100 from finishing the year in the red, having ended 2014 at 6,566.09.

Retail shares were crossed off Christmas lists, with the mild winter weather concerning investors. Mike Ashley’s sporting goods outfit Sports Direct was the only blue-chip faller, down 2p at 561p, while the high-street clothing retailer Next only marginally avoided the red, 25p better off at 7,220p.

The broker Jefferies cut its annual profit forecasts for Next, as well as for Marks & Spencer, up 4.1p at 447p, and department store group Debenhams, which fell 0.25p to 73p.

The broker also dropped its buy rating on Ted Baker, having tipped it to be one of the Christmas winners. The move wiped 76p off the stock to 3,107p.

On the junior Aim market, Sovereign Mines of Africa more than doubled, rocketing 0.165p, or 122 per cent, to 0.3p, after the former England Cricket Board chairman Giles Clarke, best known in business for turning Majestic Wine into household name, became chairman and bought £100,000 worth of shares in the West African gold explorer.