London - London's stock market rallied and the pound surged on Friday as Prime Minister David Cameron's "business friendly" Conservatives claimed a surprise victory in Britain's general election.
The benchmark FTSE 100 index jumped 1.83 percent to stand at 7,013.0 points in midday deals, lifted by soaring share price gains for banks and energy majors.
Among the biggest winners were energy firm Centrica, up 7.50 percent to 276.70 pence and state-rescued Lloyds Banking Group, up 6.56 percent to 87.53 pence, with the Conservatives seen as being less tough on regulating the financial and energy sectors compared with the Labour party, which will stay as the main opposition party.
"The Conservatives are seen as being more business friendly and more importantly, offer continuity in a country that last year experienced the fastest rate of growth in the G7," Craig Erlam, senior market analyst at Oanda trading group, said Friday.
As the results rolled in, forecasts of a close contest between the Conservatives and Labour turned out to be wide of the mark, with Cameron on course to win a majority in parliament and secure five more years in Downing Street.
The outcome sent the British pound soaring to $1.5423 from $1.5262 late in New York on Thursday. The euro was down at 72.71 pence from 73.82 pence.
The European single currency fell to $1.1215 from $1.1266 on Thursday.
"A night of victory for the Conservative party has put UK markets on the front foot, with sterling and the FTSE moving higher," said Chris Beauchamp, senior market analyst at IG trading group.
"For investors, the results... Mean that they can cease worrying about the UK economy, and focus on the other areas of concern, like Greece and whether the Fed will hike rates this year."
"The result removes the risk that the economy suffers a prolonged period of political uncertainty," said Vicky Redwood, chief UK economist at Capital Economics research group.
AFP
