Mid caps surge to record high

Mid caps surge to record high as the FTSE 100 returns to level.

The FTSE 100's return to levels last seen as the dotcom bubble burst grabbed the headlines, but the FTSE 250 list of second-tier stocks has been "setting records of a rather more impressive kind", says Robert Cole in The Times. Now at an all-time high of 10,400, the mid-cap index has notched up a 92% gain over the past five years, against only 21% for the blue-chip FTSE 100. Anyone who bought a fund tracking the Footsie in March 2003, when both indices plumbed lows before the Iraq invasion, is sitting on an 87% gain, but banking on the FTSE 250 has produced a whopping 174% return.

Corporate activity, particularly in the utility and housebuilding sectors, has helped the FTSE 250 outperform.

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