YP75: Investors celebrate best year of decade in the equity markets

During 2009, the FTSE 100 index added 22 per cent, closing at 5,413. The market now lies just three points below the close witnessed before the US investment bank Lehman Brothers filed for bankruptcy in September 2008.

The mood on equity markets, as investors look to 2010, seems a world away from this time last year when markets were reeling from the Bernard Madoff $50bn scandal and the end of 2008, the worst year on record for the FTSE 100 with more than two thousand points lost over a 12 month period.

While 2009 proved to be an exceptional year for the main index, the past 10 years have proved less fruitful with the FTSE 100, closing 22 per cent lower than on December 31, 1999.

The festive holidays once again brought little in the way of announcements by local companies – however, there was better news for the job market with the Chartered Institute of Personnel and Development (CIPD) markedly lowering their forecasts for peak unemployment to 2.8 million from the 3.2 million figure that had been predicted earlier in 2009.

York based housebuilder Persimmon rose on the latest set of housing figures from Nationwide. On average house prices rose by 0.4 per cent over the course of December, meaning a typical house in the UK rose in value by 5.9 per cent over the whole of 2009. Meanwhile, the Royal Institute of Chartered Surveyors believes house prices could return to pre recession levels over the course of 2010 which could provide further cause for cheer at Persimmon.

Dyson Group, the materials technology company based in Sheffield, has continued its restructuring programme by selling its Kiln Furniture business, based in Stoke on Trent, to the local management team for a nominal 1. Dyson Group also announced that it will allow the loss-making business to continue trading on the existing site for 12 months rent free.

Dart Group, the company which primarily trades as budget airline Jet2.com, managed to hold its share price despite growing fears of increased airline security. This follows the attack on a Delta Northwest Airlines flight to Detroit on Christmas Day. The company, which is headquartered at Leeds Bradford International Airport, announced a new base at East Midlands Airport earlier this year and full year results reported last month confirmed pre-tax profit of 25.7m, albeit down from 33.5m the previous year. The company also expressed concern over any cost increase as a result of Leeds Bradford's planned 28m terminal expansion, due to start construction later this year.

In other news, UK waste management business Augean confirmed the renewal of a three-year banking facility for up to 10m which will help to strengthen the group's finances.