Mining stocks keep FTSE buoyant
Miners recovered their poise to power the FTSE 100 Index to another five-year high today.
The top flight stood at 6113.7 by mid-morning, a gain of 32.3 points after closing lower yesterday in the wake of a sharp fall in silver and other commodity prices.
Miners dominated the Footsie risers board with Kazakhmys up 30p at 1218p, Xstrata ahead 69p at 2065p and Antofagasta up 4%, or 87p to 2435p.
Oil stocks followed suit with Royal Dutch Shell ahead 34p at 2033p, BP up 8p at 708.5p and Cairn Energy 37p stronger at 2358p.
Among other risers, National Grid was 12p brighter at 583p, as investors digested market speculation that it could attract a takeover bid.
British Airways also continued to strengthen following news of its plans to slash fares in the short-haul market. The stock lifted 4.75p to 345p.
Also in the airline sector, BAA slipped 4.5p to 859p – on the day that Ferrovial started the formal bid process for its takeover offer by posting a document to shareholders. BAA again said it rejected the proposal.
On a quiet day for corporate news, media and advertising group WPP gave back some of its recent strength with a drop of 18p to 688.5p.
Analysts described first quarter sales figures from the group as strong but said there was no material news to drive upgrades and prevent investors from engaging in a bout of profit-taking today.
Elsewhere, Associated British Ports rose 4p to 735.5p as a report in the Daily Telegraph said the company had drawn a second takeover approach from Goldman Sachs – on this occasion priced at 775p a share.
AB Ports rose by as much as 13p earlier in the session but dropped back amid signs that the offer would not be enough to satisfy the company’s board.
