Anglo American leads FTSE higher
Mining giant Anglo American led the London market higher today after promising to return $1bn (€829m) to investors next year.
This helped boost the stock 5% and also lifted a series of its rivals, contributing to the FTSE 100 Index closing 45.7 points higher at 5227.8.
Shares in Anglo American advanced 95p to 1658p after it unveiled the outcome of a strategic review which will include reducing its involvement in gold mining in South Africa.
It was followed on the way up by rival BHP Billiton, which rose 30.5p to 825p, while Xstrata lifted 30p to 1336p.
Gains across the Atlantic also helped lift the mood, with the Dow Jones Industrial Average standing around 40 points higher by the close of trading in London.
Back at home, the oil sector helped the Footsie recover some of the month’s losses, with heavyweights BP and Royal Dutch Shell ahead 17.5p and 31p to 626.5p and 1777p respectively.
Smaller energy explorers also made gains, with Cairn Energy up 55p to 1725p and BG Group 13p better off at 508p.
Leisure group Whitbread recovered from some heavy selling yesterday which saw its share price lose more than 4% as investors looked to falling earnings at its pub restaurants arm. Shares were up 12.5p at 934p today.
However, some companies reporting results today attempted to drag the market in the opposite direction.
They included miner Antofagasta, which left investors unimpressed with results showing copper production was 6.9% higher between July and September. Antofagasta’s shares fell 8p to 1459p.
Insurer Prudential was the heaviest blue-chip faller after its new boss mapped out his plans for the group with a pledge to retain ownership of the internet bank Egg. Shares fell 2% or 9.5p to 476p.
Norwich Union owner Aviva managed to avoid the negative sentiment surrounding Prudential. Its shares lifted 5.5p to 653.5p ahead of new business figures for its life and pensions division tomorrow, which are expected to be around £16.35bn (€24bn) in total.
Power firms were in the doldrums with National Grid hard on the heels of Prudential on the losers board. It slipped 9p to 503.5p, while Scottish Power lost 8.5p to 537p.
Outside the top flight, biotech firm Cambridge Antibody Technology was nearly 4% or 25p higher at 700p after settling its long-running dispute with US firm Abbott over the royalties it is paid on its Humira arthritis drug.
Tour operator First Choice cheered 8.5p to 199p as its said revenues for the winter season were 6% ahead in its mainstream business following a 39% hike in sales of long-haul flights.
The highest Footsie risers today were Anglo American up 95p to 1658p, BHP Billiton rising 30.5p to 835p, Cairn Energy up 55p to 1725p and Amvescap rising 11p to 346p.
The heaviest top flight fallers were Prudential down 9.5p to 476p, National Grid off 9p to 503.5p, Land Securities down 24p to 1367p and Scottish Power off 8.5p to 537p.
