LONDON (Reuters) – UK shares with heavy exposure to the domestic economy surged on Friday after Prime Minister Boris Johnson’s Conservative Party won a sweeping majority, which is expected to translate to Britain making an orderly exit from the European Union.
The export-heavy FTSE 100 () index rose 0.7%, lagging it’s European peers as dollar earners were hit hard by pound’s surge to 19-month high versus the dollar.
The mid-cap stocks index FTSE 250 (), which is home to many companies with high UK revenue exposure, surged about 5% and hit fresh record highs.
Emmanuel Cau, head of European equity strategy, said UK stocks were to benefit from a bullish cocktail formed by Boris Johnson’s electoral victory and a preliminary trade deal between China and the U.S.
“The banking sector, real estate, construction, utilities, all these sectors are expected to benefit from the ‘feel-good’ factor”.
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