FTSE ends day above 4,800 barrier
Top flight shares in the UK extended their gains today after broker upgrades and a rising copper price buoyed miners.
The FTSE 100 Index built on earlier progress to end the session 25.9 points ahead at 4846.7.
Footsie mining stocks were all among the risers after broker Morgan Stanley increased its profit estimates for Rio Tinto and BHP Billiton.
A rise in cash copper prices due to strong Chinese demand and shortages also lifted January futures to the daily limit on the Shanghai Exchange.
The economic news in London was downbeat, with research from the London Chambers of Commerce showing firms expected the economy to worsen in the next year.
A report from Deloitte senior economist Roger Bootle also forecast the end of a good decade for the UK economy, with growth in gross domestic product expected to slow in 2005.
There was further gloom from property website Rightmove, which released figures showing a 0.1% fall in house prices this month – the third monthly fall in a row.
There was no news from Wall Street, which closed for a public holiday. The Dow Jones Industrial Average finished last week 52 points ahead.
However, investors in London took heart from weekend speculation that broadcaster ITV could be a takeover target and upbeat statements from Plumb Center chain Wolseley and fashion retailer Monsoon.
Wolseley was the session’s biggest climber, up 6%, as it said it was confident of further progress after first half sales and profits moved sharply ahead. Shares rose 59.5p to 1047.5p.
ITV rose slightly, by 0.5p to 115.5p after a report said former BBC director general Greg Dyke may lead a £6 billion takeover bid for the group.
Tesco also advanced 2% – up 6.5p to 323.25p – ahead of tomorrow’s trading statement on its Christmas performance. It was reported yesterday that the chain plans to open its first store selling just non-food items.
Some of the biggest top flight risers were mining stocks, which built on Friday’s strong gains. Xstrata was the sector’s top beneficiary, ahead 44p at 930p, while Antofagasta was next with a 49p gain to 1141p. BHP Billiton and Rio Tinto lifted 16.5p to 642p and 40p to 1590p respectively. Anglo American added 20p to 1259p.
Shares in FTSE 250 fashion chain Monsoon soared 11% or 27.5p to 269.5p, after it overcame tough trading conditions to post a 32% hike in first half profits.
Outside the Footsie, British Energy shares were re-listed at 285p after the group completed a debt-for-equity swap. They fell to 263p after Credit Suisse First Boston said concerns remained about the performance of the group’s plants.
And the London Stock Exchange lost 5p to 580p after a weekend report revealed an investor in German stock exchange Deutsche Boerse had said it should ditch a planned bid.
Biggest risers were Wolseley, up 59.5p to 1047.5p, Xstrata gaining 44p to 930p, Antofagasta lifting 49p to 1141p and BHP Billiton advancing 16.5p to 642p.
Largest fallers were BOC, down 9.5p to 980.5p, Old Mutual off a penny at 128.25p, Unilever losing 3p to 504.5p and BT easing 1.25p to 212.5p.
