FTSE pushes ahead
The FTSE 100 Index pushed ahead today after the market benefited from a flurry of buying interest in the mining sector.
Expectations of renewed strength in commodity prices in 2005 were to thank for the rise, which propelled the Footsie up 14.4 points to 4814.7 by lunchtime.
Xstrata led the way with a gain of 3% or 24p to 894p, while BHP Billiton cheered 18p to 621p and Rio Tinto added 34p to 1549p. In the energy sector, Cairn Energy rose 24p to 1092p and BG Group lifted 7p to 367.75p.
The overall mood was further helped by expectations of a recovery for the Dow Jones Industrial Average, after falling more than 100 points last night.
Broadcaster ITV joined the miners on the risers board as investors continued to speculate about possible bid interest from private equity firm Kohlberg Kravis Roberts. Shares followed yesterday’s 4% gain with a rise of 2p to 113.5p.
Upbeat broker notes were responsible for a number of the gains in the top flight, helping British Airways up 5.5p to 252.5p and Sainsbury’s 1.75p stronger at 269.75p as analysts reacted positively to sales figures yesterday.
Takeover speculation surrounding blue-chip property group Liberty International helped its share price to rise 18.5p to 958p while upbeat comments from gases group BOC at its annual meeting pushed shares up 14.5p to 992p.
Royal & Sun Alliance was the only major riser in the financial sector after it said the bill for recent storms in the UK and Scandinavia would be around £30 million. Investors took the news in their stride and lifted the share price by 0.75p to 85p.
In contrast, Norwich Union owner Aviva fell 3p to 615.5p and Prudential eased 5p to 450.75p.
Among retailers issuing trading updates, Body Shop International surged 4% after the FTSE 250 Index company said a 5% hike in underlying sales in the UK over Christmas would help it beat expectations for annual profits. Shares were 5.75p higher at 166p.
Fresh foods group Geest was another riser, up 10.5p at 635.5p, after pledging to meet its earnings expectations for 2004.
A clutch of housebuilders joined Geest on the FTSE 250 risers board, after Bellway told shareholders it was upbeat about its prospects.
Bellway gained 12.5p to 818p while Westbury added 18p to 458p, Bovis Homes cheered 15p to 605p and Taylor Woodrow improved by 3.25p to 270.25p.
