Prepared by: Professor Ali Gamal Abdel Gawad – Lecturer of Finance and Investment.
The FTSE 100 closed slightly lower, down 0.21% to settle at 10,508.02 points. This decline was a natural correction following a strong rally that propelled the index to annual gains exceeding 19%. It also rose 5.42% over the last three months and 47.25% over the past five years, underscoring the long-term resilience of the UK market.
Financially, these figures reflect continued investor confidence in the major companies listed on the index, while fundamental factors, such as improved earnings and relatively stable economic indicators compared to many other European markets, further support this performance.
From a technical perspective, the overall trend remains positive, with the index maintaining higher highs and lower lows. The 10,400-point area represents key support, while the 10,900-11,000 point range remains the next technical target should the current resistance be broken.
The outlook suggests continued positive performance in the medium term, with the potential for new historical highs if strong corporate results continue and pressures from global monetary policy subside.
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