When it comes to the behaviour of stock markets, best not to wonder why. Even so, investors have been deprived of value for so long they cannot but be excited that FTSE 100 closed at a new record of 8975.7 and is on course to hit the 9000 mark.
London brokers attribute the surge to natural resources stocks, with Anglo American, Rio Tinto and Glencore among the biggest risers.
Activist investors, who campaigned for the mining giants to decamp to Australia or elsewhere, take note.
Despite complaints about a lack of liquidity and a London discount to New York, the City remains a good place to invest and raise capital.
It should receive a further lift next week when Chancellor Rachel Reeves unveils measures that will encourage equity investment.
A reform of the stock exchange rules makes it easier and more attractive for initial public offerings, rights issues and intermediate fund-raising, using the new Pisces platform.

Bouncing back: The FTSE 100 closed at a new record of 8975.7 and is on course to hit the 9000 mark
Moreover, private equity clearly regards Britain’s second tier public companies as handsome pickings. The near-100 per cent premium being paid for Spectris by KKR is a case in point.
Blackstone is mopping up space for online distribution and data centres, returning with a new bid for Ware- house REIT.
Stock markets have long puzzled economists and financial gurus. Nobel prize winner Paul Samuelson famously mocked the predictive skills of share indexes in spotting recessions.
John Kenneth Galbraith warned investors to beware of the ‘bezzle’, the moment when traders are so scared of missing out that they take on excessive debt.
Warren Buffett, speaking in 1989 as the Dow Jones soared, wrote: ‘I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.’
It would be nice if London shares were reacting to prospects for the British economy. But the only thing growing at present is the public sector, and there is concern that booming gilt issuance will crowd out private sector money.
One shouldn’t underestimate the stars of the UK’s investment firmament. The big pharmaceutical companies, despite political challenges, continue to innovate and pile up revenues.
The UK may not have a quoted AI champion, but in data and cyber protection pioneer RELX, it has a builder of academic, legal and financial expertise which fully has embraced AI.
The recognition and recovery of equity values in the UK is terrific. Imagine how much better it would be if UK pension funds and asset managers had not deserted in droves.
The Chancellor could partly fix that by sweeping away stamp duties on share transactions and focusing on tax relief – in ISAs and self-invested personal pension (SIPP) – on UK quoted equities.
Don’t hold your breath!
Rose-tinted
WPP has smartly chosen a new chief executive, Microsoft executive Cindy Rose, ignoring my suggestion that ‘good leaver’ Martin Sorrell be restored.
In choosing a non-executive on its board, WPP has recognised that it will need the best AI and technology.
In the meantime, WPP, after a shocking profit warning this week, cannot afford to lose more clients with the marketing reach and power of Mars and Coke.
AI can doubtless do routine stuff. As a former junior employee of a WPP company, J Walter Thompson, I learnt quickly that the intellectual property in advertising rests in the genius of the creators.
Tech is no substitute for personal schmoozing of the biggest advertisers.
Sweet dreams
When Cadbury was sold to Kraft (now Mondelez) in 2009, its chairman Sir Roger Carr sought a potential ‘white knight’ buyer, and Ferrero zoomed into view.
The numbers didn’t work – but under the leadership of Giovanni Ferrero, deals are the order of the day, with breakfast cereal denizen WK Kellogg, home of Frosties and Fruit Loops, about to be snaffled for £2billion.
Eat up, the school bus is on its way.
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