FTSE's mining stocks on front foot
The mining sector was on the front foot today after Rio Tinto unveiled a deal to create the world’s largest aluminium company.
Hopes for further consolidation in the sector propelled the heavily weighted miners ahead, helping to boost the FTSE 100 Index 22.2 points higher to 6637.3 by mid-session.
Rio Tinto slipped 1%, or 41p to 3952p, as investors digested news of the all-cash deal and some analysts suggested the firm had paid too much with its $38.1bn (€27.7bn) offer for Canadian rival Alcan.
But the news buoyed fellow mining stocks with Vedanta Resources leading the pack, up more than 5%, or 92p, at 1783p. Antofagasta followed it up the risers board, up 25.5p to 698p, while Xstrata lifted 116p to 3390p and Lonmin gained 117p to 4317p.
B&Q owner Kingfisher also earned its place amid the top share risers after an upgrade from Morgan Stanley, which said the group was the “undisputed market leader in UK DIY”. Shares increased by 2.5p to 222p.
The upgrade saw Argos and Homebase owner Home Retail Group cheer 7p to 445.75p.
A broker upgrade helped broadcasting giant BSkyB continue its rally from yesterday after the company reported 90,000 net customer additions in its fourth quarter. The stock was ahead 4p at 704p.
Meanwhile news of the appointment of former Asda deputy chairman Ian Gibson to succeed Ken at Morrisons helped lift the supermarket chain 2.25p to 316p.
But fading takeover talk saw Costa Coffee parent Whitbread top the fallers board, with the group losing gains made yesterday on sale speculation.
The stock was off 3%, or 53p, at 1893p, as rumours died down of a bid from touted suitor and real estate group Starwood Capital. Fellow pubs group Punch Taverns slipped 24p to 1284p, while Mitchells & Butler was 13.5p lower at 861.5p.
International brewing group SABMiller meanwhile was up almost 3%, or 32p, to 1302p, after a senior executive at the group’s Colombian business said the group was considering a possible acquisition of a majority stake in one of the country’s state-controlled spirits companies.
In the FTSE 250, insurance group Admiral fell 30p to 860p after disappointing investors with news it has decided against selling a stake in its price comparison website Confused.com to private equity.
