End to FTSE 100’s eight-day rally can’t dampen the feelgood factor

The end of an eight-day winning streak for the FTSE 100 index failed to dampen the overall mood of optimism today after forecasts were raised by a string of companies.

Defence technology firm Qinetiq, housebuilder Vistry and motorway barriers specialist Hill & Smith were among FTSE 250 index stocks putting a more positive spin on trading.

Their recovery hopes have been reflected in the recent performance of the wider London market, with the Pfizer vaccine breakthrough the biggest factor in the FTSE 100 index rising 14% so far this month to its highest level in five months.

There was a pause for breath today as investors locked in profits from higher banks, oil giants and travel companies. BP fell back 7.1p to 235.95p and Lloyds Banking Group dropped 0.6p to 32.7p as the wider FTSE 100 index shed 32.4 points to 6349.8.

The recent rally for Rolls-Royce also faded 3.9p to 94.5p after the engine giant's completion of its heavily-discounted £2 billion issue of new shares.

Having had a few days without Brexit as the main focus for investors, the looming deadline for EU trade talks also returned to hang over investor sentiment in the FTSE 100 index.

That was less of a factor in FTSE 250 index, with the domestic-focused benchmark up 1.63 points to 19,341.82 points thanks to a succession of encouraging trading updates.

Qinetiq, the former MoD research arm parodied in the James Bond films by the gadget-making boffin Q, jumped 7% or 20.4p to 311.4p after it increased its full-year guidance on the back of a significant order backlog.

Grafton was the next biggest riser in the FTSE 250 after the building materials distributor and DIY retailer with operations in the UK, Ireland and the Netherlands said revenues and profits had exceeded hopes in the past four months.

It was similar story from Vistry, which combines Bovis Homes, Linden Homes and the former Galliford Try Partnerships business. The group added 22p to 782p after forecasting full-year profits at the top end of expectations and raising hopes for a resumption of dividend payments earlier than previously thought.

Hill & Smith, which is exposed to increased infrastructure spending in the UK and United States, rose 22p to 1,320p after revealing it was trading slightly ahead of expectations.