FTSE hits one-week closing high aided by miners as low prices tempt traders
FIRMER miners helped push Britain’s top share index to a one-week closing high yesterday on improving risk appetite, while signs of strength in Europe’s banking system lifted banks.
The FTSE 100 closed up 141.47 points, or 2.9 per cent, at 4,965.00, its highest closing level since 28 June, and its biggest one-day percentage rise since 27 May.
The UK blue-chip index has taken a serious knock over the past two calendar weeks, shedding 7.9 per cent, on investor concerns over global economic recovery.
Mining stocks dominated the FTSE 100 leader board, bouncing back after hefty falls in the previous session.
Antofagasta, Kazakhmys and Xstrata were the best off, jumping between 6.4 and 7.6 per cent.
French banks are likely to pass ongoing Europe-wide stress tests by regulators, European Central Bank Governing Council member Christian Noyer said yesterday, relieving some concerns about the health of the sector.
Banks, which were weak on Monday, provided firm support, with Barclays leading the sector higher, up 5.9 per cent, while Royal Bank of Scotland rose five per cent.
BP rose 3.7 per cent as the British oil major ruled out a share issue and on persistent talk of sovereign wealth fund interest.
Tullow Oil was another strong gainer, up four per cent, as Uganda gave conditional approval for the sale of Heritage Oil’s assets there, paving the way for Tullow to start a $10bn project to develop Uganda’s oil reserves.
Among the mid-caps, Balfour Beatty, Persimmon and Spirax-Sarco Engineering rose between 2.8 and 6.5 per cent after issuing upbeat trading updates.