FTSE close: Miners lead rises; Lloyds falls

By Ed Monk for Thisismoney.co.uk
Updated: 12:19 EDT, 25 October 2010

17.15 (close)

Monday: Commodities are expected to lead rises today.

The FTSE 100 climbed higher today as mining stocks benefited from a weakened dollar after a meeting of G20 finance chiefs failed to offer any specific measures to strengthen the greenback.

The meeting in Korea of 20 major advanced and emerging nations resolved to avoid weakening currencies to boost exports - a scenario that could cause a trade war - but stopped short of setting any measurable targets.

With the weak greenback making dollar-based mining stocks more attractive to investors, the FTSE 100 added 10.6 points to 5751. Antofagasta topped the risers board with a gain of 52p to 1321p, a rise of 4%, while Kazakhmys added 47p to 1380p and Xstrata lifted 34.5p to 1324p.

The pound is up against the still weakening dollar at 1.52 and reversed a recent downward trend against the euro, and was up at 1.125.

Other climbers on the Footsie included luxury fashion house Burberry, which added 38p to 1032p after broker Investec upgraded its share target price to 1100p from 950p, and speculation of a bid for the firm continues after sector peer LVMH's bid for a 17% stake in luxury brand Hermes.

In a quiet session for corporate news, Pearson shares fell 3% despite the Penguin, Financial Times and school books publisher lifting its earnings guidance for the second time in three months. The stock fell 28.5p to 947.5p as Pearson cautioned that the fourth quarter was a crucial selling season for its education and consumer publishing divisions.

Lloyds Banking Group bucked the trend of rising shares and topped the fallers board after Credit Suisse cut its 12-month target price for the stock to 79p from 87p and warned falling property prices could have an impact. Shares dropped 5% from 3.9p to 68p.

It said the market's consensus forecast for 2011/12 revenues was 5% too high and said that a 10% fall in residential property prices over an 18 month period could increase impairment charges by up to £5bn.

The update also knocked Royal Bank of Scotland, which slipped 0.8p to 45.4p.

Outside the top flight, shares in McBride, which makes supermarket own-label products such as laundry liquids, mouthwash and toothpaste, rose 2% after it announced a 1% rise in sales between July 1 to October 24, even though chief executive Chris Bull admitted big brands were fighting hard for sales.

He said the promotional spree was not necessarily bad news for McBride as consumers would become accustomed to paying low prices for brands and when the average price increased again they would buy even more supermarket own label goods, which would offer better value for money.

The biggest Footsie risers were Antofagasta up 52p at 1321p, Kazakhmys ahead 47p at 1380p, Burberry up 32p at 1026p and Wolseley ahead 52p at 1703p.

The biggest Footsie fallers were Lloyds down 3.9p at 68p, Pearson off 28.5p at 947.5p, Invensys down 8.8p at 311.6p and Standard Chartered off 32.5p at 1806p.

15.25: A strong start on Wal Street. The Dow is 97.37 points higher at 11.229.93 in early trading.

Back in London, the FTSE 100 is 40.18 points higher at 5871.55.

14.15:

The Footsie is hanging onto gains made first thing today. It sits 54.51 point higher at 5765.88.

13.10:

With the weak greenback making dollar-based mining stocks more attractive to investors, the FTSE 100 Index has added 38.6 points to 5780 today.

Antofagasta is still topping the risers board with a gain of 54p to 1323p, a rise of 4%, while Kazakhmys has added 48p to 1381p and Xstrata has lifted 45.5p to 1335p.

The recent trends for world currencies continued today with the pound up against the dollar but down against the euro after hitting a six-month low against the single currency on Friday.

Lloyds Banking Group is thenheaviest faller, down 2.1p to 69.7p after Credit Suisse cut its price target on the stock.

It said the market's consensus forecast for 2011/12 revenues was 5% too high and said that a 10% fall in residential property prices over an 18 month period could increase impairment charges by up to £5bn.

The update has also knocked Royal Bank of Scotland, which slipped 0.6p to 45.6p.

Outside the top flight, shares in McBride, which makes supermarket own-label products such as laundry liquids, mouthwash and toothpaste, have risen 2.5% after the company announced 1% rise in sales for the most recent quarter, even though chief executive Chris Bull admitted big brands were fighting hard for sales.

He said the promotional spree was not necessarily bad news for McBride as consumers would become accustomed to paying low prices for brands and when the average price increased again they would buy even more supermarket own label goods, which would offer better value for money.

11.30:

In a quiet day for corporate news, Financial Times publisher Pearson upped its full-year earnings guidance for the second time in three months after underlying sales rose.

Surging demand for e-books is helping drive a better-than-expected performance Pearson, the group said today. Despite that, Pearson shares have fallen 8.5p today to 967.5p.

Read more.

Overall, the Footsie is 36.62 points better off at 5777.99.

09.50:

The FTSE 100 made a strong start to the week, with miners leading the gains after G20 leaders said they will work to avoid a currency war. Lloyds has fallen after a negative broker update.

European markets posted healthy gains today after G20 finance chiefs vowed to avoid a currency war that could derail the global economic recovery.

While the gathering in Korea stopped short of setting any measurable targets, the group of 20 major advanced and emerging nations resolved to avoid weakening currencies to boost exports - a scenario that could cause a trade war.

This added to pressure on the US dollar, which has fallen sharply in recent weeks as investors await a move from the Federal Reserve to pump more money into the US economy.

With the weak greenback making dollar-based mining stocks more attractive to investors, the FTSE 100 Index added 41 points to 5782.3. Antofagasta topped the risers board with a gain of 52p to 1321p, a rise of 4%, while Kazakhmys added 48p to 1381p and Xstrata lifted 41p to 1330p.

In a quiet session for corporate news, Pearson shares fell 1% despite the school books publisher lifting its earnings guidance for the second time in three months. The stock fell 9p to 967p as Pearson cautioned that the fourth quarter was a crucial selling season for its education and consumer publishing divisions.

Lloyds Banking Group topped the fallers board, down 1.6p to 70.2p after Credit Suisse cut its price target on the stock.

In currency, the pound this morning was worth $1.5757 compared to $1.5663 at the previous close. Against the euro, the pound was worth €1.1201 compared to €1.1263 at the previous close.

On Wall Street later the Dow Jones Industrial Average is expected to follow UK share higher.