Financial shares have led the market higher despite a last minute sell off which saw the leading index come sharply off its best levels.
Having climbed as high as 6315 and ahead around 70 points at the closing auction, the FTSE 100 finished the last day before the EU referendum with a 34.64 point rise to 6261.19. The close of the market coincided with a new poll showing a one point lead for the campaign for the UK to leave the EU.
Overall it was a fairly uncertain day as investors who had driven the market higher as the Remain camp seemed to be gaining ground, paused for breath. Still, leading shares have recovered from their recent falls and now stand at a two week high. Chris Beauchamp, senior market analyst at IG, said:
As the final day of campaigning goes on, with both sides looking to wring every last vote from the British public, markets have remained positive, with further solid gains for the FTSE 100 and European indices. London’s leading index has enjoyed a round trip of around 800 points since 9 June, with the country’s Brexit referendum the chief culprit for the move. Remarkably, the index finds itself within touching distance of its June high, a clear sign that investors at least are now relatively confident that the UK will vote to remain in the EU on Friday. And, in a further sign of confidence, financial stocks dominate the leader board in London, with those with a strong UK focus some of the biggest gainers.
Hargreaves Lansdown was the leading riser, up 54p to £13.81, while Old Mutual added 5.6p to 193.4p and Standard Life was 9.3p higher at 340.7p.
But Primark owner Associated British Foods dropped 99p to £28.02 as Morgan Stanley moved its recommendation from overweight to equal weight on concerns about the growth outlook for the discount fashion retailer. A disappointing update from Debenhams, down 4.55p to 69.70p, did not help matters.
Commodity shares also came under pressure, as a lower than expected fall in US oil stockpiles sent Brent crude down 1.6% to $49.80.
A profit warning from speciality chemicals group Elementis saw it plunge nearly 8% to 208.7p.
