logo-loader

FTSE100 closes flat with miners the big gainers

Published: 17:38 07 Oct 2015 BST

london_skyline_new_56154ac4cae8d

Miners were the big risers of the day but Footsie finished flat at 6,325 after some volatile trading at the end of play.

At mid-session the blue chip benchmark had been 41 points higher bolstered by oil shares, but the afternoon saw traders sell-off equities.

The biggest gainer was mining giant Anglo American (LON:AAL), which added 9.57% to 662p. Rio Tinto (LON:RIO) and copper giant Antofagasta (LON:ANT) both ended the session, over 7% higher.

Joshua Mahony, at IG Index, said: "Mining stocks have continued to drag the FTSE higher, recovering not only their own losses but in turn helping the main UK index to the biggest six-day rise since August 2011.

"There is no doubt the commodity space is inextricably linked with this recent recovery."

Earlier, the oil majors had benefited from favourable industry news.

BP (LON:BP.) was up then and still closed 2.35% higher at 387p. Shell (LON:RDSB) added 2.75% to 1,815p, as the price of a barrel of Brent crude and US light crude bounced.

It came as Middle East oil cartel OPEC and Shell said operational and investment reduction would lead to price rises and spikes.

US industry data also showed stockpile draw-downs, implying less US production, while geopolitical risk in the Middle East raised fears of supply disruption.

The price rises were bad news for big fuel users such as airlines, however.

British Airways and Iberia owner IAG (LON:IAG) flew over 5% lower to 555.5p, while Easyjet (LON:EZJ) descended 4.94% to 1,673p. Cruise ship giant Carnival (LON:CNR) also lost 4.59% to 3,285p.

In the UK, official figures showed a 0.5% monthly rise in manufacturing output beating forecasts of a 0.3% rise, while the 1% rise in industrial production topped expectations of a 0.3% gain.

But Capital Economics said: "Given that the bigger services sector recovery has lost some steam recently, GDP growth in Q3 still looks likely to have slowed from Q2’s 0.7% quarterly gain. What’s more, the near-term outlook for the manufacturing sector isn’t too good."

All eyes turn now to BoE's policy committee's interest rate decision tomorrow.

Drinks titan SABMiller (LON:SAB) frothed up 0.43% despite rejecting a revised US$104bn bid from rival Anheuser-Busch InBev.

Supermarket group Tesco (LON:TSCO) rose 2.52% to 197p as it posted operating profits of £354mln in the first six months of the year, compared to £916mln in 2014, a drop of some 55%.

The beleaguered supermarket giant did manage a small pre-tax profit of £74mln, however, from a loss the previous year.

Gemfields (LON:GEM) lost 6.72% as the precious stone producer reported record sales but lower-than-expected annual profits.

Strat Aero (LON:AERO) ascended 11.86% to 8.25p on news of a second deal within the space of about a week, this time with a drone training company.

Tethys Petroleum (LON:TPL) gushed 4.76% higher to 5.50p after Nostrum Oil & Gas withdrew its proposed takeover offer for the Central Asian and Caspian-focused explorer.

Rare Earth Minerals (LON:REM) went 2.04% higher to  1p as it said drilling at the Cinovec lithium-tin-tungsten project in the Czech Republic is progressing well.

The work is being carried out by European Metals, in which REM has a 9.79% stake.

Jubilee Platinum (LON:JLP) was a notable gainer, adding 22.48% to 3.95p.

Last week it said it had reached a key milestone in selling its Middelburg smelter and power operations in South Africa - namely, the transfer of ownership to buyer  Siyanda.

The sale of Middelburg smelter and 70% of power generator Power Alt for around £5.3mln was announced in July.

The final cash settlement will take place on October 9 and Jubilee retains the right to construct a 5MW platinum furnace at the Middelburg operations and the right to participate in any expansion.

FTSE rises ahead of Easter weekend, JD Sport gains on upbeat outlook -...

The FTSE 100 gained on the final morning of this shortened Easter trading week. Festive cheer was limited though, as Thames Water confirmed shareholders would not provide it with a £500 million rescue package, prompting speculation over the London supplier’s future. On a more positive...

1 hour, 45 minutes ago