FTSE 100 hits record high of 7,382.9 points on Trump quip and pound's dip

Pound's slump sent international investors bargain hunting for UK blue chip stocks.

People walk through the central atrium at the London Stock Exchange, London Leon Neal/ AFP

Blue chip shares were on the front foot as the FTSE 100 closed on a record high of 7,382.9 points, up 1.64% or 119.46 points, as US President Donald Trump refrained from customary outbursts and pledged $1trn (£0.8trn, €0.9m) infrastructure spending in his address to Congress.

With the pound having slumped against the dollar on comments from US Federal Reserve Chief William Dudley, international and institutional investors pumped up the trading volume in their quest for bargain British blue chip buys.

Ashtead Group (+5.74%), CRH (+4.93%), Glencore (+4.88%) and Next (+4.60%) were among the biggest FTSE 100 gainers of the session.

Broadcaster ITV (+4.54%) also found itself among the biggest FTSE 100 risers after it declared that profit before tax and revenue both climbed 4% year-on-year to £847m and £3.53bn for the 12 months to 31 December 2016.

However, the dip in precious metal prices, triggered by the strength of the dollar, meant Randgold Resources (-1.13%) and Fresnillo (-0.87%) were among the session's biggest fallers, alongside Royal Mail (-1.83%), Babcock International (-1.21%) and Centrica (-1.06%).

Summing up the market mood, Connor Campbell, financial analyst at SpreadEx, said: "The weakened pound is what has been helping the FTSE 100 Index higher.

"The dollar is also strengthening because there is every chance that there is going to be a rate hike from the Fed as early as 15 March," he added.

Away from blue chips, the FTSE 250 ended the session 1.13% or 212.30 points higher at 18,983.01, with Kaz Minerals (+6.45%), Vedanta Resources (+6.04%), Senior (+5.85%), ZPG (+4.90%) and Dechra Pharmaceuticals (+4.29%) leading the way.

Finally, the dubious honour of the session biggest faller went to consumer credit firm International Personal Finance (-10.60%). The midcap consumer credit company, which is currently staring at a demotion from the FTSE 250, had its finances dented by stricter regulation in Poland and restructuring in Mexican business.

LON:GLEN