Miners push up FTSE 100
Britain’s leading share index jumped yesterday, driven by gains in mining stocks as the demand picture for metals was brightened by hopes of fresh moves by China to boost its economy.
At the close, the FTSE 100 index was up 98.80 points – or 1.9 per cent – at 5,403.28 points, adding strongly to Monday’s 0.7 per cent recovery, which followed a five-day losing streak.
Miners provided the main support for the blue chips, with the sector higher after a state-backed Chinese newspaper said the country – the world’s top metals consumer – would fast track approvals for infrastructure investment to boost its economy.
Global miner Xstrata said it is betting sluggish copper demand in China will pick up in the second half as it makes plans to boost production of the metal by 60 percent. As a result its shares gained 3.2 per cent.
Banks bounced as well, helped by hopes that a meeting of European Union leaders could today promote new measures to tackle the region’s debt crisis.
RBS added 5.3 per cent, Lloyds was up 4.5 per cent and Barclays gained 2.9 per cent.
Market heavyweight Vodafone also lent its considerable strength to the FTSE 100 index too, up 4.2 per cent as the mobile phone group posted in-line full-year results which included a seven per cent dividend hike.
“In a sector context, the fact that Vodafone has reiterated a growing dividend should provide reassurance,” Espirito Santo Investment Bank said in a note repeating its “buy” rating.
Among the minority blue chip fallers, defensively-perceived stocks were weaker as investors’ risk-appetite returned, with food retailers among the worst off, led by WM Morrison, down 0.9 per cent, and Tesco, off 0.4 per cent.
Luxury goods firm Burberry was also lower, losing 0.6 per cent ahead of its full-year results due today.