Miners and bankers lead way on FTSE
MINERS and banks led the way on the London market today while commodity stocks drove higher on hopes for economic recovery.
Broker comments acted to soothe sentiment on the financial sector, with Royal Bank of Scotland, HSBC and Lloyds Banking Group all enjoying rises.
The FTSE 100 Index closed 32 points ahead at 4436.8, paring more dramatic gains earlier in the session as Wall Street lost ground after opening.
The Dow Jones Industrial Average was down slightly despite positive corporate news with US retail giant Home Depot indicating better-than-expected results.
But the Footsie held most of its gains as oil prices nudged above the 70 dollar a barrel mark, peaking at a high for the year.
However, the market showed little appetite for a sustained break above the 4500 mark, climbing above the level briefly during the day before sliding back down.
Metal prices have also risen on a weakening US dollar, which helped mining stocks surge up the leaders’ board.
Miners accounted for the Footsie’s top five risers, led by Vedanta Resources, which gained 139p to 1770p.
Meanwhile Eurasian Natural Resources was 54.5p better at 730p after a well-received trading update in the sector and Xstrata lifted 50p to 771.5p.
The other significant moves of the session came from the banking sector after a positive assessment from JP Morgan.
RBS led the rise, up almost 5 per cent - or 1.8p to 37.9p - while HSBC gained 18.25p to 536p.
Lloyds Banking Group also lifted 2p to 65p, recovering ground lost after its £4 billion share placing on Monday.
Retailers were also on the front foot continuing yesterday’s gains for the sector and amid the positive report from Home Depot in the US.
Marks and Spencer rose 9.75p to 292.75p while Argos owner Home Retail Group lifted 7.75p to 266p and Next gained 26p to 1546p.
The appetite for commodities saw investors taking their money out of more defensive blue-chip stocks, as Vodafone edged 2.35p lower to 112p and Centrica fell 2p to 229p.
Thomas Cook suffered a reversal of fortune, topping the fallers board after leading the winners yesterday as speculation continued about its future following the collapse of its majority shareholder, German firm Arcandor. Shares lost 16.75p to 219p.
In the second tier, spread betting firm IG Group continued its bounce after yesterday’s update. Shares rose 17p to 259p as UBS raised its target price.
Among retailers outside the top flight, bikes and car parts firm Halfords lost 2p at 343.5p - despite an early rise for the shares - after it said annual profits grew but reported its first revenue dip in more than 20 years. The chain saw record sales of camping equipment.
The biggest Footsie risers were Vedanta Resources up 139p at 1770p, Eurasian Natural Resources up 54.5p at 730p, Xstrata up 50p at 771.5p and Rio Tinto up 196p at 3148p.
The biggest Footsie fallers were Thomas Cook down 16.75p at 219p, Carnival off 48p at 1557p, Cable & Wireless down 3p at 127p and Invensys down 5.25p at 229p.
