MARKET REPORT: Footsie tipped to breach 8,000 mark next week

The FTSE 100 hit a record high as analysts predicted that London’s top index could reach the 8,000 mark next week.

On another day of gains, the blue-chip index rose 0.3 per cent, or 25.98 points, to 7911.15.

That eclipsed the previous record close of 7901 set at the end of last week and took gains this year to more than 6 per cent.

The Footsie traded even higher in early trading, reaching an intra-day record of 7949 before easing.

Analysts said it may not be long before new milestones are reached. ‘At the current rate, we could see the FTSE 100 break through the 8000 level by early next week, which would represent a long-overdue victory for the UK stock market,’ said AJ investment director Russ Mould.

That would represent a remarkable recovery after the Footsie crashed below 5000 in 2020 during the depths of the pandemic.

Hargreaves Lansdown analyst Susannah Streeter said the rally was driven by easing concerns over rising interest rates and a brighter outlook for the economy.

Bellway and Redrow became the latest housebuilders to point towards signs of recovery in the housing market.

Following a tough end to 2022, Bellway said more people signed up to buy new homes. It should complete the sale of around 11,000 homes in the 12 months to July.

The market was left reeling from the chaos that ensued following September’s mini-Budget when mortgage rates spiked.

Bellway said its reservation rate plunged 31.7 per cent to 138 per week in the six months to January compared to 202 a year earlier.

Stock Watch – Genedrive

Genedrive soared 33 per cent, or 8.25p, to 33.25p after its test that can stop babies going deaf was given preliminary approval for use in the NHS.

The Manchester molecular diagnostics firm’s test can detect a variant in babies which leaves them at risk of hearing loss if given antibiotics such as gentamicin.

The test means a different antibiotic could be used to treat bacterial infections.

It could be approved outright after a public consultation ends on February 21.

The group still managed to sell 5,695 homes, with the average selling price up 1.6 per cent to £316,900.

Its revenue for the period should come in at more than £1.8billion – up from £1.77billion in 2022. Shares inched up 1.3 per cent, or 29p, to 2221p.

Meanwhile Redrow boss Matthew Pratt said consumer confidence is beginning to pick up after it was ‘badly affected’ by rising mortgage rates.

It hailed an ‘encouraging start’ to the second half of its financial year. Its average weekly reservation rate rose to 0.51 per outlet in the five weeks to February 5.

This stood at 0.38 in the six months to January compared to 0.64 a year earlier.

But revenues of £1.03billion during the period were 2 per cent lower than the previous 12 months.

It cut its revenue forecast for 2023 to £2.05billion from a previous target of £2.1billion. It also withdrew its forecast for 2024. The shares fell 1.2 per cent, r 6.5p, to 538.5p.

Bellway and Redrow’s results came after Barratt Developments, the UK’s biggest housebuilder, said on Wednesday that the market is showing early signs of recovery following a sharp slowdown.

Avon Protection took another step towards becoming the American military’s main helmet supplier after the headgear and gas mask maker landed its second order with a US Defence department. The order, worth £5.5million, is part of the helmet contract Avon won in 2022.

It expects to start delivering the helmets and receiving revenues in its next financial year. Shares rose 1.2 per cent, or 11.34p, to 966p.

Argo Blockchain is on the hunt for a new chief executive after the bitcoin miner’s boss Peter Wall, who is also the interim chairman, stepped down to ‘pursue other opportunities’.

Chief operating officer Seif El-Bakly has been appointed as the interim chief executive while Matthew Shaw will be taking over as chairman.

It came only a day after the group reported a 14 per cent increase in the number of bitcoins mined in January. Its shares tumbled 12.1 per cent, or 2.2p, to 16p.