FTSE 100 close: Shares bounce after fall, miners up
The FTSE 100 set about repairing the damage from yesterday's sudden late falls, with better news from Wall St and higher commodity prices propping up shares.
Frdiay feeling: Will shares end an up-and-down week ahead?
Commodity and oil companies lead the way after a slight recovery in battered commodity prices.
Tullow Oil and Cairn Energy were among the highest risers, up 36p to 1,175p and 41p to 2,710p respectively, with BG Group, 18p higher at 1,085p. Tullow gained after Goldman Sachs upped its price target from 1160p to 1396p.
A predicted 27 point gain on the opening of the Dow Jones helped the Footsie keep its head just above water throughout the afternoon after shedding more than 60 points to close below 5100 last night.
On a day when shares struggled for a firm direction, the FTSE 100 closed 2.9 points higher at 2082.2. But the Dow later plunged into the red, falling 30.99 points to 9676.45 by the London close.
Markets seemed to be waiting to be given direction from world leaders at the G20 in Pittsburg. Noises from them that measures to stimulate economies across the globe will continue have helped markets, analysts said, but there is nervousness about upcoming corporate results.
Richard Hunter, head of equities at broker Hargreaves Lansdown, told Reuters: 'Investors will take some succour that the stimulus from central banks is still going to be there and that it will support local economies.
'There's a worry that the market has moved too far, too fast and we're at a crossroads ahead of Q3 results to see how strong and sustainable the recovery is.'
In a thin day for corporate news, nightclubs operator Luminar slumped 29% after it reported a sharp drop in admissions and said it was in danger of failing to meet its target for full-year profits. Shares tumbled 43.25p to 86.75p.
Tate & Lyle shares were slightly lower, down 5p at 410p, after it said it expected half-year operating profits to be similar to a year ago.
Meanwhile, support services group Serco was a faller - off 2.5p at 500p - as HSBC cut its rating for the stock from overweight to neutral.
Talk of another rights issue at Lloyds Banking Group pushed the taxpayer-backed bank, and rivals in the sector, lower. Lloyds lost 3.65p to 103.45p, with Barclays and RBS each suffering to a lesser degree.
HSBC bucked the trend, rising 1.2p to 704.6p.
Monday's agenda
Ian Meakins hasn't got the easiest job. The new chief executive of Wolseley - who presents the plumbing and building group's full-year results for the first time on Monday - stepped into the shoes of ousted chief executive Chip Hornsby in July.
Now he is tasked with turning around the underperforming juggernaut. Investors will be keen to hear Meakins' plans and his views on the prospects for the business in the coming months. Although the company has already cut 27% of its workforce, he is tipped to reveal details of further cost-cutting plans.Meakins' first move as chief executive was to start dismantling the empire built up by Hornsby.
He is planning to sell its operations in Belgium, the Czech Republic and Slovakia. Investors will also want to know if there are likely to be any further disposals. Brokers don't expect too many surprises from the numbers, after a detailed pre-close trading statement. The City will, however, be scrutinising the figures for signs of a pick-up in any markets.
Liberum Capital reckons underlying pre-tax profits will come in at around £256m - down from £631m last year. But they also warn that there will be write-offs and other exceptional charges of around £1.5bn. Analysts are, however, pencilling in a 'token' final dividend of 3p.
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