UK Market Wrap
UK markets soar, led by natural resources rebound
London started the week off on a positive note, with the FTSE 100 climbing 5.4% to 4282, finishing the day on its high point after a solid start on Wall Street. By 9pm, the Dow Jones, Nasdaq and S&P 500 were all looking to finish near session highs, further lifting the chances that London will advance again tomorrow morning.
Energy and mining lead the way forward, as oil, gold, platinum, silver all advanced despite a rise in the US dollar against most currencies. Base metals didn't fare as well, with copper, nickel and aluminium all softening on over-riding concerns about the slowing demand from China, which reported lower than forecast growth today, albeit from high expectations.
Diversified mining titan, Rio Tinto (LSE: RIO) was one of the biggest gainers on the day, climbing 13% to 2545 pence. The other big miners were not far behind. Xstrata (LSE: XTA) climbed 9%, BHP Billiton (LSE: BLT) climbed 8.8% and Anglo American (LSE: AAL) tacked on 5%.
More focused mining groups fared pretty well too. First Quantum Mining (LSE: FQM) climbed 6.2%, Kazakhmys (LSE: KAZ) rose 4.5%, Antofagasta (LSE: ANTO) rallied 8.5% and Vedanta (LSE: VED) jumped over 10%.
Precious metal companies didn't perform quite as well, though still put in good gains over all. Rangold Resources (LSE: RRS) climbed 1.5%, Yamana Gold (LSE: YMA) fared better, climbing 6%, Lonmin (LSE: LMI) recovered 5.3% but Fresnillo (LSE: FRES) didn't join in the party, slipping around 1%.
Energy plays had a very good day. Both BP (LSE: BP) and Shell (LSE: RDSB) rose more than 10%, Dana Petroleum (LSE: DANA) and Cairn Energy (LSE: CNE) both climbed more than 5%.
It wasn't only the miners and oilies that joined in the rally today. Autonomy (LSE: AU.) put in a very strong performance, climbing almost 16%, as did FTSE 250 constituent William Hill (LSE: WMH) after it said it was not being impacted by the downturn in the economy.
Financial also rebounded from the recent savaging they have received. Royal Banks of Scotland (LSE: RBS) was the big gainer, climbing 23% on rumours that it may be close to divesting of its insurance arm. Lloyds TSB (LSE: LLOY) tacked on 9% and HSBC (LSE: HSBA) just over 5%. HBOS (LSE: HBOS) however, fell 1%.
Retailers and Hospitality groups also posted gains, though more modest ones. Tesco (LSE: TSCO) actually ended the day down a fraction, Morrison (LSE: MRW) barely crossed the line in the blue, but Sainsburys (LSE: SBRY) climbed 6%.
British Airways (LSE: BAY) climbed almost 7%, partially on hopes that the market is pricing in to grim a future for its key New York - London business class statistics.
Defensive sectors also climbed higher, but unperformed the wider market.
Further down the market, it was more of mixed bag, as usual.
New World Resources (LSE: NWR), the Czech Republic coal producer, said it had picked up a 25% stake in fellow miner Ferroexpo (LSE: FXPO) for £126.6 million.
Sports Direct (LSE: SPD) was also on a buying spree, taking a 5% stake in fellow sports retailer, JJB Sports (LSE: JJB) and also confirmed that it held a further 15% on contracts for differences ('CFDs'). JJB Sports jumped 13%. Sports Direct fell slightly.
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