The value and number of trades of blue-chip shares has increased this year based on the data presented by the London Stock Exchange.
Apprehensions of a flare-up of the Eurozone crisis, the cascading price of oil and the currency tumult in Russia drove a surge in FTSE 100 share dealing on the London Stock Exchange this year.
Nearly, 110 million trades in blue-chip shares had been carried out by mid-December, up from 90.4 million last year and the most since the financial crisis went in 2008, based on a data compiled by the LSE.
The total value of the FTSE 100 trades went up with £825.3 billion-worth of shares changing hands during the period. That was comparative with the £707.9 billion during the entire 2013 and places the 2014 on course to be the largest year for the value traded in the past four years.
Analysts have been referring that the ominous headlines from Greece wherein the elections have been threatening to cascade the Eurozone back into crisis and Russia, which has been thrown into economic turmoil by western sanctions along with this year’s plunge in crude had ignited increased market volatility and trading volume.
Since the FTSE 100 is not considered a domestic index, the companies on it are global companies affected by global trends. More than two-thirds of the merged revenues of blue-chip companies are generated overseas and so the benchmark index is greatly influenced by movements in sentiments towards the global economy.
The upheaval in commodity markets has assisted to encourage spur trading in the FTSE 100, which is bias towards international miners and oil companies that are together accountable for the 20pc of the benchmark index.
Iron ore declined into a bear market this year, a plunge that has resulted in investors’ attention to the blue chip mining giants such as BHP Billiton and Rio Tinto. Correspondingly, the oil disturbance casted a spotlight on shares in BG Group, Royal Dutch Shell and BP which were sold on the lower back of the crude oil’s decline.
As a consequence, the FTSE 100 has lasted a turbulent year, rising as high as 6, 904.86 and falling as low as 6,072.68 before closing at 6,633.51 last week.
The uptick in trading extended well beyond the FTSE 100, yet with the European exchanges experiencing an increase in volumes, several spread-betting companies that provide traders with access to foreign exchange and commodities similarly experienced an increase in client activity following the surge of volatility across the financial markets.