London stocks rise at open despite hung parliament | 2017-06-09 |

London stocks rise at open despite hung parliament

AFP     9th June, 2017 02:25:41 printer

London stocks rise at open despite hung parliament

LONDON: The London stock market rose in opening deals on Friday, as dealers eyed the tumbling pound after British Prime Minister Theresa May lost her parliamentary majority in a snap election.


In initial trade, the British capital's benchmark FTSE 100 index advanced 0.6 percent to 7,494.96 points. Within minutes, it rose further to show a gain of 1.2 percent.


The pound has fallen sharply on fears the Conservative leader May will be unable to form a government and could even be forced out of office after a troubled campaign overshadowed by two terror attacks.


"We may be in turmoil politically but the FTSE is finding some upside after a night of drama," said analyst James Hughes at trading firm GKFX.


"A weaker pound helps to boost companies publically quoted in the UK and props up the equity markets," he told AFP.


"The situation we now have means we have huge uncertainty that is going to weigh on sterling, and while that happens it should be good news for the FTSE 100 and UK equity markets in general."


Meanwhile in the eurozone, Frankfurt's DAX 30 shares index opened flat at 12,711.53 points before bobbing into positive territory, while the Paris CAC 40 was 0.2 percent higher at 5,275.99.


May called the snap election in April in an attempt to extend her majority and strengthen her position, but her gamble backfired spectacularly after she fell short of the 326 seats needed for a majority.


With a handful of seats still to be declared, the Conservatives were predicted to win 318 seats, down from 331 in 2015 -- yet another upset in a turbulent year since the EU exit referendum in June 2016.


The main opposition Labour party, led by Jeremy Corbyn, is expected to increase its share from 229 to 262 seats, resulting in a hung parliament.