The FTSE 100 closed at a fresh record high on Tuesday having broken its all-time record earlier in the day on the back of a good day for its retailers.
The index ended the day 0.26 per cent higher at 8,044.81, ahead of the 8,023.87 it closed at yesterday.
“This positive showing is exactly what’s needed to help repair the reputation of the UK stock market,” Russ Mould, investment director at AJ Bell said.
“Investors are finally getting the message that a good chunk of these businesses still have a lot to offer, delivering slow but steady profit growth, and they’re available for a fraction of the price of some of their overseas peers,” he continued.
The FTSE 100 surpassed its previous all-time high, rising as high as 8,075 shortly after midday. However, it then gave up most of these gains after Huw Pill, the Bank of England’s chief economist, suggested rate cuts were still a few months away.
Pill’s comments came as a disappointment to markets after the more dovish tone struck by Dave Ramsden, another rate-setter, last week.
The pound rose to as high as $1.2450 today, ending the day around 0.7 per cent higher following Pill’s comments.
Associated British Foods (ABF) was the day’s biggest riser, closing up 8.9 per cent.
The Primark owner hiked its dividend after reporting that operating profit grew 39 per cent in the first of the year to £911m, helped by a “return to normality” in markets, such as sugar, and its grocery arm.
“These results are testament to ABF’s resilient and diversified business model, and further proof for their shareholders they are well insulated from economic threats,” Mark Crouch, analyst at investment platform eToro, said.
Other retailers also gained, with Ocado rising 6.3 per cent after reports suggesting that its shareholders want it to list in the US.
JD Sports meanwhile gained 3.8 per cent after it picked up listed American retailer Hibbert, a rare example of a London-listed company poaching from US markets.
JD Sports described it as an “important strategic milestone for the group”.