The
poll victory will allow him to end three years of political
paralysis and take Britain out of the European Union within
weeks.
Shares in three of the UK’s four biggest supermarket groups -
Tesco <TSCO.L>, Sainsbury's <SBRY.L> and Morrisons <MRW.L> -
were up 4.1%, 3.6% and 2.3% respectively by 0921 GMT, while
clothing and food retailer Marks & Spencer <MKS.L> was up 9.4%.
Analysts said pent up consumer demand could find a release in
big grocery shops in the lead up to December 25 and higher
spending on so called "big ticket" items.
The protracted uncertainty around Brexit and the incessant media
coverage was strong enough for consumers to reduce volumes in by
100 to 150 basis points, according to Bernstein analyst Bruno
Monteyne.
"This is just in time for the most important food retail trading
event: Christmas where families traditionally trade up when they
feel good," he said.
The pound rallying to an 18-month high versus the U.S. dollar
should further benefit retailers as it reduces the cost of
importing goods and raw materials.
Shares in Associated British Foods <ABF.L>, the owner of fashion
retailer Primark, were up 5.9%, while shares in Next <NXT.L>
increased 4.2%. Both chains source the majority of their goods
in dollars from Asia.
Uncertainty about Brexit and the election has weighed on
Britain's property market this year.
With the path now clearer, at least in the short term, shares in
Kingfisher <KGF.L>, the owner of Britain's biggest home
improvement company B&Q, were up 5.4%, while electricals
retailer Dixons Carphone <DC.L> was up 8.1%.
(Reporting by James Davey; editing by Mike Harrison)
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