The FTSE 100 hit a record high yesterday as investors piled into UK stocks amid a US tech sell-off.
London’s blue-chip index reached an all-time peak for the second day in a row, closing up 1.1 per cent, or 98.92 points, at 9288.14.
The rally, which took the Footsie’s gains so far this year to nearly 14 per cent, came despite official figures showing inflation hit 3.8 per cent in July.
Analysts said that investors may be buying into defensive London-listed stocks amid a market rout in the US. David Morrison, a market analyst at broker Trade Nation, said: ‘The FTSE 100 has had a good year so far. And this has come about despite its lack of exposure to tech.
‘It looks as if investors are choosing to shift out of expensive tech growth stocks and into old- fashioned value plays, of which there are plenty in the FTSE 100 which remain relatively cheap.’
Danni Hewson, head of financial analysis at broker AJ Bell, said: ‘Defensive stocks are in vogue, with the likes of Unilever, British American Tobacco and United Utilities all doing well.’
Rally: London’s blue-chip index reached an all-time peak for the second day in a row, closing up 1.1%, or 98.92 points, at 9288.14
Consumer goods giant Unilever, which owns household name brands such as Dove soap, Domestos bleach and Sure deodorant, rose 3.3 per cent.
Cigarette maker British American Tobacco rose 2.7 per cent. United Utilities added 3.5 per cent.
Meanwhile, in the US, the Nasdaq Composite dropped 0.7 per cent as a sell-off of tech stocks accelerated amid fears that the hype surrounding AI has been overdone.
The S&P 500 fell 0.2 per cent while the Dow Jones Industrial Average closed virtually flat, up just 0.04 per cent.
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