FTSE close: Miners, HSBC lead gains; TUI falls

By Ed Monk for Thisismoney.co.uk
Updated:

 

Renewed economic optimism helped the FTSE 100 Index push past the 6000 mark today despite profit taking on America's top share index.

Trading Screen

On the up: Factory activity has given sentiment a boost.

News of a rebound in the UK construction sector added to cheer over upbeat manufacturing data in both the UK and US the previous session.

The Footsie closed 42.3 points higher at 6000.1 after yesterday's 1.6% surge despite a lacklustre start to trading on Wall Street.

The Dow Jones Industrial Average clung to its opening mark, with little support offered by decent earnings reports from Time Warner, chocolate giant Hershey and AOL.

US investors were taking profits after the Dow rose above 12000 for the first time in two-and-a-half years on Tuesday.

Markets worldwide have been spurred on by encouraging economic data, which has helped ease lingering concerns over the political unrest in Egypt.

Survey data showing a rebound in the UK construction sector last month after a snow-hit December helped extend gains in London.

The figures also sent the pound surging to a three month high against the US dollar.

Sterling rose to 1.62 dollars and gained strength against most major currencies, up 0.5% to 1.17 euros.

Commodity firms were among those stocks benefiting the most on the Footsie.

Lonmin was the sector's biggest gainer, up 69p to 1768p, while Rio Tinto followed with a 163.5p gain to 4507.5p.

Banks joined in the rally, led by HSBC with a 13.7p rise to 701.4p.

Lambert & Butler maker Imperial Tobacco was the star performer on the FTSE 100 as its first quarter trading update revealed a return to sales growth.

The world's fourth biggest cigarette firm rose 6% or 106p to 1900p as it said sales volumes lifted 1.2% and underlying net revenues rose 5% in the three months to December 31.

Mobile phone giant Vodafone was also in the spotlight after it confirmed the boss of electronics giant Philips, Gerard Kleisterlee, would succeed outgoing chairman Sir John Bond.

Shares in the heavyweight blue-chip stock edged 0.1p higher to 177.1p. News that chemicals company Johnson Matthey expects its underlying full year performance to come in slightly ahead of forecasts failed to inspire shares, which fell 18p to 1983p.

A number of stocks also dropped into the red as they turned ex-dividend, meaning new investors will not take part in the forthcoming dividend payout.

This saw already under-pressure tour operator TUI Travel suffer further losses. Its shares, which have been hit by the Egypt crisis in recent days, fell 4.5p to 247p.

In corporate news, merger talks between struggling retailer JJB Sports and its rival JD Sports Fashion sent shares in JJB 17% higher, up 0.8p to 5.4p, with investors hoping for an end to its survival battle.

JD Sports lost earlier gains, down 3.5p to 844p, as the market digested the prospect of a potential 700-store sportswear giant being created.

The biggest Footsie risers were Imperial Tobacco ahead 106p to 1900p, Arm Holdings up 24p to 571.5p, Lonmin up 69p to 1768p and Rio Tinto up 163.5p to 4507.5p.

The biggest Footsie fallers were GKN down 10p to 193.8p, International Power off 14.4p to 405p, AMEC down 35p to 1216p and AstraZeneca down 84p to 2947.5p.

16.15: The FTSE 100 is ahead 39.6 points at 5,997.4 as the end of the session approaches.

The Dow is still in the doldrums, down 9.9 points at 12,030.2. In the US, worries over Egypt are dominating despite better than forecast private sector employment figures.

European indices are mixed, with France's CAC 40 slipping 9.1 points to 4063.5 while Germany's DAX has surged 106.8 points to 7184.3.

15.05:

Things are underway on Wall Street, and in early trade the Dow is down.

The Dow Jones has shed 18.2 points at 12.021.96.

Back in London, the FTSE 100 is 22.93 points higher at 5980.75.

13.15:

A lunchtime update - banks and miners have helped the FTSE 100 rise 39.19 points to 5997.01.

Commodity stocks are among those benefiting from the improved global growth outlook, which helped ease lingering concerns over the political unrest in Egypt.

African Barrick Gold was the sector's biggest gainer, up 17.5p to 525.5p, while Lonmin followed with a 56p gain to 1755p.

Banks joined in the rally, led by HSBC with a 13.4p rise to 701.1p.

Lambert & Butler marker Imperial Tobacco was the star performer on the FTSE 100 as its first quarter trading update revealed a return to sales growth.

The world's fourth biggest cigarette maker rose 5% or 83p to 1876p as it said sales volumes lifted 1.2% and underlying net revenues rose 5% in the three months to December 31.

And merger talks between struggling retailer JJB Sports and its rival JD Sports Fashion sent shares in JJB 12% higher, up 0.7p to 5.3p, as investors hoped for an end to its survival battle. There's more on that here.

12.05:

The FTSE 100 is hanging on to gains from early today and is currently 41.56 points higher at 5999.38.

In economic news today, the construction sector posted a return to growth after a snow-hit December. Read more here.

And the IFS joined the debate on tax cuts and growth with a warning that the March Budget must not include the tax breaks which drivers, businesses and cash-strapped families have been crying out for. Here's more.

09.45:

The FTSE 100 pushed towards 6,000 after better economic news in the UK and US, with miners Eurasian and Xstrata gaining, and Vodafone higher on news of a new boss.

Global economic recovery hopes fuelled further gains on the London market today as investors put fears over unrest in Egypt behind them.

The FTSE 100 Index rose above 6,000 in early trade and by 9.45 had settled 39.76 points higher at 5997.51. That came after yesterday's 1.6% surge spurred on by upbeat manufacturing data in both the UK and US.

America's Dow Jones Industrial Average closed above 12,000 for the first time in two-and-a-half years overnight as the economic cheer offset any lingering concerns over Egypt's political situation.

Miners and commodity stocks were among those benefiting from the improved growth outlook.

Eurasian Natural Resources was the sector's biggest gainer, up 39p to 1076p, while Xstrata followed with a 38.5p gain to 1441p.

Mobile phone giant Vodafone was also in the spotlight after it confirmed the boss of electronics giant Philips would succeed outgoing chairman Sir John Bond.

Shares in the heavyweight blue-chip stock rose 2.2p to 179.2p.

In corporate news, merger talks between struggling retailer JJB Sports and its rival JD Sports Fashion sent shares in JJB 22% higher, up 1.1p to 5.7p as investors hoped for an end to its survival battle.

JD Sports shares eased by 6.5p to 841p.

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