On Tuesday, the UK’s new Prime Minister disclosed that she will spend billions to stop the inflated cost of energy which has been a concern for households and businesses. Consequently, some shares in London’s trading floor gained.
Retailers And Pub Group Gains
The top retailers and pub groups are among the top gainers. JD Sports, Kingfisher, Ocado, and Next all gained above 4% according to FTSE 100 reports. Traders anticipate that the techniques to be adopted by the new prime minister would ease the high cost of living crisis.
Similarly, there was a rise in FTSE 250. All thanks to the retailers and pub groups sectors. JD Wetherspoon, Greggs, and Mitchells & Butlers all gained as people hope the new government’s plan will relieve the households and businesses.
All these follow the report by BBC that the new prime minister, Liz Truss, plans to relieve the household of the high gas fees by paying gas distributors with loans in the 2 winters to come.
Also, the new government plans to help the companies relieve the burden of the high cost of energy which has recently hindered most businesses from operating.
Today, there was a 10% gain in the shares of UK’s pub group giant, Mitchell & Butlers. JD Wetherspoon pub group also recorded an over 7% increase in share price.
The top fast food chain and bakery chains were not left out. Domino’s Pizza and Greggs both jumped by 7%. Mark & Spencer and Dunelm shares gained almost 5%.
Households Are Not Convinced
The increase in the retailers’ shares seems not to convince the households. Many are worried about what the coming months have in stock for them. Most people are cutting their expenses, even on essential supplies.
Similarly, few analysts believe the surge in the prices of retailer and pub group shares is not convincing regardless of promises by the new government to assist those affected by the increase in gas fees. The length of these gains in shares is another issue.
Generally, people are still struggling. Data from National Statistics reveals households are reducing their costs as much as possible as they prepare for a possible economic meltdown amid the increasing cost of living.
A study by building society across the nation revealed that 71% of the 2,000 households studied, felt there is a need for a reduction in their spending. Also, 81% confirmed they are anxious as the increasing cost of leaving is affecting their revenue adversely.
