FTSE Records Biggest Gain for 5 Years

The FTSE 100 shrugged off a €5bn fraud at French bank Société Générale to record its biggest one-day performance since the start of the last bull market.
TradingEconomics.com, Financial Times 1/24/2008 12:15:17 PM

The index’s best one-day session for almost five years came just a few days after it had suffered its biggest one-day slump since 2001.

The UK benchmark finished 266.5 points, or 4.6 per cent, higher at 5,875.8, its best one-day performance since March 2003.

Ironically, many believed the fraud at SocGen had actually helped sentiment. Traders said the fact that SocGen had been forced to unwind rogue stock futures contracts may help explain why the market had fallen so violently on Monday.

Thursday’s rally was broad-based and driven by the combined influence of the heavily-weighted banking, mining and oil sectors amid a growing feeling that the recent sell off left the market looking undervalued.

There was further upside from New York. As London traders shut up shop, the Dow Jones Industrial Average was 0.4 per cent higher at 12,318.8, building on the late rally that took the US market higher at the end of the previous session.

FTSE Records Biggest Gain for 5 Years