While the post-election reaction among the FTSE 100 set has been rather muted, the mid-cap FTSE 250 index has made strong gains.
The index, which comprises the 101st to 350th largest UK-listed companies by market capitalisation, has added over 250 points, or around 1.2%, to hit 20,861.
Not a year-to-date high, but only 40 points off.
Unlike the globally focused FTSE 100, the FTSE 250 is substantially more domestic in terms of revenue generation, making it more exposed to any immediate political ramifications emerging from the changing of the guard.
“Labour talked a lot about wanting to boost the economy and help businesses during its election campaign,” said AJ Bell investment analyst Dan Coastsworth.
“Now comes the hard part and delivering on its promises. Public finances aren’t in the best shape given high levels of debt and it will take a lot of hard work to accelerate economic growth.
“For now, Labour has a period of grace to settle into office and fine-tune its strategy, but investors can be impatient at the best of times and failure to produce positive results as we move into 2025 could see sentiment start to shift.”