£400billion added to value of UK listed firms in past 10 weeks as market bounces back from coronavirus lows
More than £400billion has been added to the value of UK shares in the past ten weeks as the stock market rebounded off its coronavirus lows.
Investors went into panic mode as the scale of the Covid-19 pandemic became evident towards the end of February, wiping hundreds of billions of pounds off the FTSE All Share index.
At its worst point on March 23, the FTSE All Share was down 34 per cent since the rout began on February 24.
Investors went into panic mode as the scale of the Covid-19 pandemic became evident towards the end of February, wiping hundreds of billions of pounds off the FTSE index
But as the City has grown accustomed to the crisis, and lockdown measures are eased across Europe, tentative buyers on the hunt for bargains have pushed the index up 26 per cent.
This has added £402billion to the value of Britain’s listed companies.
However, the index is still 17 per cent lower than it was before the February rout, meaning many savers with money tied up in the stock market through pensions, ISAs or other investments are still nursing heavy losses.
Those who bought into the market close to lows will be sitting on tidy profits, however. But there could still be more volatility on the way, experts have warned.
Michael Hewson, chief market analyst at CMC Markets, said the good news ‘could all unravel quite quickly if in the wake of loosening the lockdown we get a quick rise in re-infection rates’.
The FTSE 100 index of Britain’s biggest listed companies was up another 1.2 per cent, or 74.54 points, to 6218.79 yesterday, taking its gains since the March lows to 25 per cent.
However it is still 19 per cent off its January highs. The partial recovery over the past few weeks has been driven by a resurgence in sectors such as housebuilding and travel.