Mining stocks push Footsie higher
Stronger mining stocks were the driving force for the London market today as the FTSE 100 Index finished well above the 4800 barrier.
Forecasts of renewed strength in commodity prices in 2005 were behind the rally by miners, propelling the Footsie up 20.5 points to 4820.8 at the close of trading.
BHP Billiton led the way with a gain of 4% or 22.5p to 625.5p while Rio Tinto added 35p to 1550p and Xstrata rose 16p to 886p. In the energy sector, Cairn Energy cheered 27p to 1095p and BG Group lifted 7.25p to 368p.
A modest recovery in New York further helped the mood as the Dow Jones Industrial Average put back some of the previous night’s 100-point losses.
Broadcaster ITV joined the miners on the risers board as investors continued to speculate about possible bid interest from private equity firm Kohlberg Kravis Roberts. Shares followed yesterday’s 4% gain with a rise of 3.5p to 115p.
Upbeat broker notes were responsible for a number of the other gains in the top flight, helping British Airways up 5.5p to 252.5p and Sainsbury’s 4.25p stronger at 272.25p as analysts reacted positively to sales figures yesterday.
Takeover speculation surrounding blue-chip property group Liberty International helped its share price to rise 25.5p to 965p while upbeat comments from gases group BOC at its annual meeting pushed shares up 12.5p to 990p.
Royal & Sun Alliance was the only major riser in the insurance sector after it said the bill for recent storms in the UK and Scandinavia would be around £30 million. Investors took the news in their stride and lifted the share price by 1p to 85.25p.
In contrast, Norwich Union owner Aviva fell 2.5p to 616p and Prudential eased 6.25p to 449.5p.
Among retailers issuing trading updates, Body Shop International surged 3% after the FTSE 250 Index company said a 5% hike in underlying sales in the UK over Christmas would help it beat expectations for annual profits. Shares were 4.75p higher at 165p.
Fresh foods group Geest was another riser, up 18p at 643p, after pledging to meet its earnings expectations for 2004.
A number of other retailers were also in positive territory as investors prepared for the final big week of Christmas trading updates. Boots, which posts figures on Thursday, rose 10.5p to 667.5p and HMV gained 8.75p to 258.25p, ahead of its interim results on Tuesday.
A clutch of housebuilders also featured on the FTSE 250 risers board, after Bellway told shareholders it remained upbeat about its prospects.
Bellway gained 24.5p to 830p while Westbury added 16p to 456p, Bovis Homes cheered 21p to 611p and Taylor Woodrow improved by 8.5p to 275.5p.
The biggest Footsie risers were BHP Billiton, up 22.5p at 625.5p, ITV ahead 3.5p at 115p, Hanson up 14.75p at 499.75p and Liberty International ahead 25.5p at 965p.
The biggest fallers were Cable & Wireless, down 3p at 114.75p, Sage Group off 4.75p at 192.25p, Northern Rock down 13p at 773.5p and HBOS off 13p at 839.5p.
