May 2015 Market Commentary | IFA Colchester

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The Conservative Party’s unexpected victory in the UK election led the shares of medium-sized domestic companies to rally strongly in May, as represented by the FTSE 250 index. Concerns surrounding Labour’s anti-business rhetoric and the possibility of an ineffective coalition weighed heavily on UK stocks going into the election, leading shares to trade lower as the risks of a less favourable regulatory environment appeared greater. Financial markets responded positively to the surprise Conservative victory, which was generally perceived to be the most business-friendly outcome.

As a sign of relief, UK homebuilder stocks rallied by over 20% since the election result on ‘mansion taxes’ being struck off the political agenda. Other industry sectors that were previously under pressure, including financial institutions and energy companies, now have the green light to resume forward planning following months of uncertainty. Subsequentl