British shares swung both ways yesterday as big institutional investors rushed to book some of their recent big profits. Flurries of selling pressure occurred throughout a vibrant trading session, which featured the failure of the FTSE 100 index to breach the 5,000 level.
There had been widespread expectations that Footsie would push through 5,000 when the market opened, because of the latest strong rise on Wall Street on Wednesday.
At its best, within the first half hour yesterday, Footsie came within seven points of the 5,000 mark, but a sudden sell-off in the FTSE future, and the emergence of selling in the cash market, saw the index buckle under the strain.
Thereafter, the index moved erratically, sliding back from the early intra-day record of 4,993.0 to post a 28.7 point fall at the day's lowest point.
Another upward move failed to hold in the late morning and the index subsequently dropped back again to finish an extremely busy session 15.2 off at 4,949.0.
The FTSE Mid-250 index, on the other hand, gave a much more sedate performance, clawing back some of the ground lost to the FTSE 100 over recent months. It remained in positive territory throughout the day, finishing with a comforting 12.6 rise at 4,500.2. The FTSE SmallCap index was again left behind, settling 2.3 down on the day.
Broker Albert E Sharp said smaller companies "will start rising from September and outperform the main market in the coming 12 months".
This morning promises more excitement with the expiry of July FTSE 100 index options.
- (Financial Times Service)
