Investors flocked to buy UK equities on the day Labour took power in a rare vote of confidence in the unloved London share market.
Investors bought a net £59 million of UK-focused funds on Friday July 5, the day after the general election, as the party’s landslide victory was formally confirmed.
However, the bet on a resurgent UK share market appears to have been short-lived, with a net £207 million still pulled overall from UK-focused funds over the whole of July, according to the funds network Calastone, which tracks fund purchases and redemptions.
Labour swept to power on the promise of reigniting economic growth and a pledge to restore political stability while adopting fiscal rectitude. While an initial fillip to the market soon fizzled out, London has still outperformed Wall Street over the past few weeks.
Share prices are down since the July 4 election day close, the FTSE 100 retreating by 2.6 per cent since then and the more…
