Closing Comments 18th May 2009

Going into the close, today has seen a solid performance by UK stocks.

After an initial opening wobble, shares have made solid progress throughout the day, helped along by a strong start to trading in Wall Street. Lloyds Banking Group has topped the blue chip gainers for the day following news that the chairman will be stepping down next year. This bounce back has reclaimed most of the losses from the past week but many traders still feel that the best is behind the banking recovery, for the short term at least, and are sceptical about how much upside is left after today’s move.

For the wider market, today’s rally has reclaimed a large chunk of the ground given back towards the end of last week, but again many seem to be resigning themselves to sideways trading sessions over the next few weeks. A run back up to test the highs around 4500 looks achievable, but it still remains difficult to see what is going to emerge to propel the market out to fresh highs at the moment.

Anthony Grech is Research Analyst for IG Index, the world's largest and longest running spread betting company

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