U.K. domestic stocks surged after the Conservative Party’s election victory lifted the uncertainty that has persisted since the country voted to leave the European Union and removed concern about the Labour Party’s plans to nationalize assets.

The FTSE 250 index jumped as much as 5.4%, the most since 2010, and hit a record high. Banks, utilities, homebuilders and retailers led gains for U.K. stocks, with Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc both up at least 7% as of 9:38 a.m. in London. The FTSE 100’s gains were curbed by exporters falling on the pound’s strength.

“In a world starved of yield, the U.K. equity market is awash with compelling dividend opportunities – this decisive election result means these companies will return to the radar of international investors,” James Uphaugh, chief investment officer at Majedie Asset Management, said. “As long-term, active investors we see a number of exciting opportunities given the enticing valuations.”

But questions remain about the U.K.’s departure from the European Union. “Enjoy the rise in U.K. share prices, but don’t be fooled into thinking we’ve found El Dorado,” said Jim Wood-Smith, chief investment officer, private clients at Hawksmoor Investment Management. “We have no idea what the deal will look like at the end of next year, or indeed if there will even be a deal.”

For more reaction from strategists and economists see here. Here are the U.K. sectors and stocks moving the most.

Domestic banks including RBS, Lloyds and Virgin Money U.K. Plc soared across the board. Financial services firms like Hargreaves Lansdown Plc and St James’s Place Plc also rallied.

Mediobanca SpA analysts think the result should boost commercial banking income and upgraded its ratings for Lloyds, asset manager M&G Plc and insurer Direct Line Insurance Group Plc. Still, Citi said that fundamentals for U.K. banks are still not that strong.

Deutsche Bank AG also reckons the result is a good outcome for U.K. insurers and may see them narrow the valuation gap to European peers.

Nationalization Targets
Water firms Severn Trent Plc and United Utilities Group Plc, electricity grid operator National Grid Plc and energy firm SSE Plc all jumped. All had been targeted for nationalization by the Labour Party.

Those companies have been recovering ground against their European peers as the chance of a Labour win receded, but the Tory majority and Jeremy Corbyn stepping down as Labour leader should now remove this risk for the sector.

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