Pubs, bookies and builders drive budget bounce for UK mid-caps
Mid-cap stocks outperformed blue-chip index despite new tax rises
Small cap stocks saw a significant boost, led by AIM index
Banks, homebuilders, betting companies, and pubs benefited from budget measures
Updates with comments, budget details; refreshes prices at 1522 GMT
By Lucy Raitano
LONDON, Oct 30 (Reuters) -UK mid cap stocks enjoyed a lift on Wednesday as market players deemed the new Labour government's first UK budget to be less punitive on businesses than many had previously feared.
Mid-cap stocks outperformed the blue-chip index, even as UK finance minister Rachel Reeves announced a raft of new tax rises to the tune of 40 billion pounds a year, which would mostly affect businesses.
"UK Chancellor Rachel Reeves has delivered a tough but fair budget, much of which was already expected as it had been leaked to the market," said Adrian Gosden, UK equities and fund manager at Jupiter Asset Management in London.
"The UK is open for business."
Domestically-focussed stocks led a charge higher, with shares of pubs, homebuilders and gambling platforms the biggest beneficiaries.
At 1507 GMT, the mid-cap FTSE 250 .FTMC index was up 0.4% having risen as much as 1.7% during the budget, while the FTSE 100 .FTSE was last down 0.5%, barely changed from the day's open.
Small cap stocks got an even bigger boost. The FTSE AIM index .FTAI rose by nearly 4%, on course for its biggest one-day rally since April 2020, after the government cut business property relief on AIM-listed shares to 50%, rather than scrapping it altogether as investors had feared.
"AIM shares have been depressed for some time, partly due to the inflation and monetary policy backdrop, as well as the build up to this budget. But with this hurdle now mostly cleared, and interest rates beginning to fall, there is a clear runway for growth for these smaller companies," said Amisha Chohan, head of small cap strategy at Quilter Cheviot.
Eustace Santa Barbara, who co-manages the IFSL Marlborough Special Situations, UK Micro-Cap Growth and Nano-Cap Growth funds, said with this uncertainty out of the way, the outlook for small caps looked more positive.
"This might not be the catalyst for a dramatic turnaround in investor sentiment on UK smaller companies, but we see it as a step in the right direction," he said.
"The most likely policy boost for this market was always going to be monetary rather than fiscal, and further rate cuts should deliver that in due course," he said.
Britain's banks rose as the budget avoided a levy on their profits, with a basket of UK banks .FTNMX301010 turning positive.
A basket of UK homebuilder stocks .FTNMX402020 surged as much as 3.7% and was last up 2% after Reeves pledged over five billion pounds ($6.48 bln) of housing investment. Crest Nicholson CRST.L, Persimmon PSN.L and Taylor Wimpey rose between 2.2%-4.8%.
Betting companies including Ladbrokes-owner Entain ENT.L and Flutter Entertainment FLUT.K rose to the top of the FTSE 350, up 6.5%-7.6% after Reeves left taxes on the sector unchanged.
Pub stocks also enjoyed a lift after Reeves announced a cut to duties on alcoholic drinks in pubs, and extended England's business rates relief for retail and hospitality. Wetherspoons JDW.L, Marstons MARS.L and Mitchells & Butlers MAB.L were last up 2.4%-5.4%.
Elsewhere, a basket of UK utilities names .FTUB6510 ticked higher, up as much as 1.4%.
Clean energy tech company Ceres Power CWR.L shares rose 4.9%, with the budget including an announcement for eleven new green hydrogen projects.
Oil and gas companies Hunting HTG.L and Harbour Energy HBR.L were up 2.6%-4.3%.
Additional reporting by Samuel Indyk; Editing by Amanda Cooper and William Maclean
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
