Commodity stocks boost FTSE
Commodity stocks provided a welcome uplift for the London market today after a rise in base metal and oil prices.
The FTSE 100 Index closed the day up 43.7 points at 6571.3 as it bounced back from seven out of eight sessions in the red.
Energy stocks were some of the biggest gainers after the cost of crude edged ahead following a US government report which revealed a surprise drop in US petrol inventories ahead of the country’s key summer driving season.
BP climbed 11.5p to 599p, BG Group was 21p higher at 813p and Royal Dutch Shell cheered 52p to 2060p after it also benefited from a broker upgrade from Morgan Stanley.
Meanwhile, copper prices were also on the front foot as a strike in Chile prompted concerns regarding the disruption to global supplies. The rise boosted mining stocks with BHP Billiton up more than 3%, or 41p at 1386p, Rio Tinto ahead 91p at 3781p and Vedanta Resources advancing 2%, or 32p to 1594p.
Drinks group Diageo led the Footsie fallers, down more than 2%, or 27p at 1038p, even though it said it was on track to meet estimates for its full year. The slip came as Collins Stewart downgraded the stock amid concerns of a market slowdown in the US.
Vodafone added its weight to the blue-chip risers amid rumours that it had entered into talks with Apple over selling the iPhone in Europe. At the same time the firm was linked to a possible bid for a 30% stake in Pakistan’s Warid Tel network. The stock closed up 2.4p at 166.2p.
Confectionery firm Cadbury’s Schweppes gained 15.5p to 676p on the news that activist shareholder Nelson Peltz had upped his stake in the company, while supermarket Sainsbury also benefited after it emerged that Robert Tchenguiz had doubled his interest in the group. The stock was 6.5p higher at 583.5p.
But mortgage bank Northern Rock continued its descent after falling 12% yesterday following a warning that its margins were under pressure from rising interest rates. Shares were trading in the black during the session, but drifted back in afternoon trading to close down 5p at 829p.
Elsewhere, Mecca Bingo group Rank made progress after a trading update proved better than the expected, with shares up almost 4%, or 6.75p at 187.25p.
But warranties specialist Domestic & General was the biggest riser in the FTSE 250 Index as the prospect of a £500m bidding war for the group emerged. D&G said it had received further bid interest following news last month that Homeserve had its eye on the firm. The stock was up almost 11%, or 134p, at 1361p.
The biggest Footsie risers were Experian up 20.5p at 626.5p, BHP Billiton ahead 41p at 1386p, British Energy up 14p at 539p and BG Group ahead 21p at 813p.
The biggest fallers were Diageo down 27p at 1038p, BAE Systems off 7.5p at 403p, Associated British Foods down 13.5p at 900.5p and Royal Bank of Scotland off 6p at 623p.
