FTSE still on the up
The London market edged further above the 6300 mark today as it built on strong gains yesterday despite a slow start to the session.
The FTSE 100 Index was up 8.1 points to 6319 as it added to the dramatic 90-point rise in the previous session.
There was also a bullish start to new year trading on Wall Street with the Dow Jones Industrial Average up more than 100 points by the time the London market closed.
The latest rise in London, albeit small, came despite heavy losses in the mining sector as the falling price of copper caused profit-taking following yesterday’s rally.
Banking stocks helped offset the losses as the sector maintained the progress that helped the Footsie make a flying start to the year.
Barclays rose another 14.5p to 760.5p as investors continued to take a punt on the possibility of a bid for the group.
HSBC lifted 14p to 953p, while Royal Bank of Scotland cheered 38p to 2074p after UBS named it as one of three banks to watch in 2007.
However, the day’s biggest riser was Northern Rock with gains of 30p to 1222p.
Prudential was also in good shape as the insurer, seen by some as a possible bid target, gained 13.5p to 724.5p.
Cruise company Carnival continued to steam ahead with a rise of 66p to 2681p, its highest level since May last year.
Mining stocks were under pressure as copper tumbled below $6,000 a tonne amid fears of a surplus of supplies.
Xstrata led the retreat with a fall of nearly 6% or 152p to 2417p. It was followed down by Vedanta Resources, which lost 72p to 1158p, Antofagasta, off 28p to 488p, and Lonmin, which shed 122p to stand at 2975p.
Eight of the top nine fallers in the FTSE 100 Index came from the mining sector. BHP Billiton fared better than its rivals but was still down 3% or 29p to 933p.
Retailers were also in the spotlight as investors prepared for a series of trading updates in the coming days.
Fashion chain Next, which is due to post a trading statement tomorrow, showed a rise of 5p to 1847p, while Currys owner DSG International lifted a penny to 196.5p. Morrisons was ahead 2.25p at 262.25p.
Confidence was helped by a positive update from warehouse chain Majestic Wine, which kicked off the retail reporting season with a ealthy return from the Christmas period. Like-for-like sales improved 4.4% on a year earlier, ensuring Majestic shares rose 1.5p to 360p.
The day’s biggest blue-chip risers were Northern Rock up 30p to 1222p, Carnival 66p higher at 2681p, Barclays with a gain of 14.5p to 760.5p and Prudential up 13.5p to 724.5p.
The heaviest fallers were Xstrata off 152p to 2417p, Vedanta down 72p to 1158p, Antofagasta with a fall of 28p to 488p and Drax Group 43p lower at 761.5p.
