London’s blue-chip stocks ended the day higher, though commodities kept the market in check throughout the day.
While pharma companies bolstered the UK’s main market, commodity stocks weighed, meaning the FTSE100 could only manage a 25 point gain to 6,420.
Alastair McCaig at IG said: “The appeal of mining companies has become increasingly difficult to see, as increasing production levels coupled with dwindling demand has given little reason to believe a bounce in the sector will soon materialise.”
Miners including Anglo American (LON:AAL) down 2.1% to 397p and Rio Tinto (LON:RIO), 1.2% lower to 2,188p were among the index’s biggest fallers.
At the other end of the index, pharma firms were higher, with Shire (LON:SHP) leading the way.
Shares in Shire closed 109p, or 2.35%, healthier at 4,745p on Wednesday amid reheated talk in dealing rooms that the drug group was poised to make a bid for US osteoporosis specialist Radius Health (NASDAQ:RDUS).
Shire has pledged to continue its pursuit of US bleeding disorder specialist Baxalta, which has already rejected its advances.
But it has said it will still consider smaller bolt-on acquisitions, while not naming those it is looking at. Shares in Radius were 0.63% up at US$57.16 in morning trading in New York.
Away from Shire, pharma stocks were higher after morgan Stanlet upgraded several stocks.
AstraZeneca (LON:AZN) and GlaxoSmithKline (LON:GSK) were 1.5% to 4,582p and 2% higher to 1,378p respectively.
Glaxo’s price target rises to 1,450p from 1,350p with the broker’s recovery well on track suggested the US broker.
Meanwhile, Astra had both its price target, to £53 from £43, and its investment view, to ‘overweight’, upgraded by the broker.
Over in the US, The Dow Jones open just a sliver higher on Wednesday, at 17,880, while the S&P 500 and Nasdaq benchmarks similarly began unremarkably at 2,100 and 5,167 respectively.
Back in the UK, Pub and brewing giant Greene King (LON:GNK) shares frothed up 8% despite it warning that consumers were spending more on big items rather than going to the pub as it posted higher profits.
In the small cap space, Plant Health Care (LON:PHC) signed a new distribution agreement with Sym-Agro, which expands the relationship between the two companies.
Sym-Agro will distribute Employ, a product based on Plant’s technology. Shares rose 13.9% or 10p to 82p.
Meanwhile, Coral Products (LON:CRU) said pre-tax profits more than doubled to £684,000 in the half-year to October 31 from £291,000 the year before despite slower sales at the injection moulded plastic products firm. Shares flew 20% to 24p.
Port and waste treatment company for the oil and marine industries Nature Group (LON:NGR) said it has entered into a non-binding agreement to sell its subsidiary Nature Port Reception Facilities to an unnamed party. Shares were 5.6% higher at 11.75p.
Conversely, Tricorn (LON:TCN) warned its second half may be hit by slowdowns in key markets, meaning it will miss expectations despite making a small profit in the first half of the year. Shares lowered 18.5% to 11p.
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LONDON AFTERNOON
After early gains, London started to dawdle with attention diverted by debate on whether the UK should start airstrikes in Syria.
US are expected to open in wait-and-see mode as well as two speeches are due today.
FTSE 100 was 21 points higher at 6,416, with pharmaceutical stocks the frontrunners as Morgan Stanley upgraded several of the UK’s leading drug makers.
AstraZeneca (LON:AZN) and GlaxoSmithKline (LON:GSK) led the way.
Glaxo’s price target rises to 1,450p from 1,350p with the broker’s recovery well on track suggested the US broker.
Shares rose 2.2% to 1,380p, while Astra rose 74p to 4,589p as Morgan Stanley upgraded both its price target, to £53 from £43, and its investment view to ‘overweight’.
After a year of underperformance Astra is set to reap the rewards of heavy investment, at an attractive valuation,” said the US broker.
Weak construction numbers had little impact on the housebuilders.
Persimmon (LON:PSN) added 10p to 1,936p to 1938p, Taylor Wimpey (LON:TW.) rising 0.5p to 197p and Barratt Developments (LON:BDEV) flat at 606p.
A report by the architect’s trade body RIBA that Britain's new homes are being built like 'rabbit hutches' was also brushed off by investors.
But Sage (LON:SGE) fell 11p to 566p as investors took profit after the accountancy software firm said it still had a lot to do in its restructuring drive.
By contrast, Pub and brewing group Greene King (LON:GNK) rose 108p, or 13%, to 959p after posting a 47% rise in pre-tax profit even though it said it faces ferocious competition for people’s cash.
Plant Health Care (LON:PHC) rose 13.9% to 82p on a new distribution agreement with Sym-Agro, which will distribute Employ, a product based on Plant’s technology.
Ceres Power (LON:CWR) climbed 14% to 6.95p as it said the latest version of its steel cell technology will allow it to tap into more of the commercial and residential energy market.
Contractor Sweett Group (LON:CSG) shed 5% to 19.79p as admitted an offence under the UK Bribery Act in relation to two related contracts in the Middle East in 2013.
LONDON OPEN
Dismal UK construction figures took the shine off a rise in London shares on Wednesday.
Construction output growth slowed in November amid weakest rise in housing activity since June 2013, according to the construction purchasing managers index (PMI) from economic data group Markit and the Chartered Institute of Procurement & Supply (CIPS).
Residential building activity increased at the weakest pace since June 2013, while civil engineering activity rose at the slowest rate for six months and was the worst performing subcategory.
Commercial construction activity topped the growth table, but the latest expansion was less marked than October’s eight-month high.
Markit senior economist Tim Moore said: "Overall the latest results suggest construction companies have become a little more cautious towards year-end, especially in terms of job hiring."
CIPS chief executive David Noble said: "There is a question mark over the coming months as the housing sector, normally the star performer, may drag back on recovery along with the lack of availability of skilled staff."
The FTSE 100 Index rose 24.37 points to 6420.02 in early trading.
Shares in housebuilders were marginally up in early trading, with Persimmon (LON:PSN) gaining 12p to 1938p,Taylor Wimpey (LON:TW.) rising 0.9p to 197.4p and Barratt Developments (LON:BDEV) climbing 5p to 611.5p.
But Sage (LON:SGE) fell 28p to 548.5p as investors took profit after the accountancy software firm said it still had a lot to do in its restructuring drive.
Pub and brewing group Greene King (LON:GNK) rose 73p, or 8.6%, to 924.5p after posting a 47% rise in pre-tax profit.
MARKET PREVIEW
London’s blue-chips are set for more gains early on after the bank-inspired rise Tuesday.
Financial spread bet firms see the FTSE 100 Index adding up to 20 points when trading gets underway, after it closed 40 points higher at 6,396.
Bank shares reacted to Bank of England governor Mark Carney’s comment that there was no new wave of capital regulation on the way.
US shares also had a good day, with the Dow Industrial Average up 168 at 17,888 and similar percentage gains for the S&P 500 and Nasdaq.
A report that Yahoo is mulling the sale of its core internet business was the corporate highlight. Shares in the web group rallied late in the day.
Asian markets were more mixed with decent gains in Hong Kong and Shanghai on hopes that another set of weak manufacturing figures would spark more stimulus measures. Tokyo drifted lower.
Brewer, pub owner and restaurateur Greene King (LON:GNK) and accountancy software specialist Sage (LON:SGE) are among the UK companies reporting.