Mining stocks boost FTSE
Renewed bid speculation involving energy giant Centrica excited traders during an otherwise lacklustre end to the week for the London market.
Shares in the British Gas owner were up 5.5p to 300.5p as the City resurrected talk of a possible move by Russia’s Gazprom.
The wider market was ahead 26.1 points at 5932.2 by mid-morning following a strong performance by mining stocks.
The sector was helped by the prospect of an end to a 25-day strike at the world’s biggest copper mine.
BHP Billiton, which owns the site, rose 15p to 1016p while shares in Xstrata rose 39p to 2397p after a positive broker note yesterday.
Trading volumes were light as investors struggled to find reasons to enter the market.
The speculation involving Centrica lifted the rest of the energy sector, with power plant Drax up 21p to 921p and British Energy ahead 14p to 684.5p.
Corus was another on the way up, as reheated takeover speculation helped its shares recover from the disappointment surrounding its half-year results this week. Shares fell 2% on Wednesday but were up by a similar amount today, ahead 6.25p to 301.25p, as investors pondered overseas interest.
Outside the top flight, Mecca Bingo owner Rank Group recovered from a tough start to gain 3.5p to 217p. Shares initially went into reverse following first half pre-tax profits below City expectations at £40.7m (€60.4m), compared with £41.9m (€62.2m) in the same six months of last year.
The mood turned later in the session after Investec Securities upgraded its price target because of operational cost savings.
There was steady progress for property website Rightmove, which rose 3p to 307p following the announcement of its results. The company cheered investors by bringing forward its first dividend payment and posting a doubling in operating profits.
