FTSE close: Aggreko & miners continue gains

By Ed Monk for Thisismoney.co.uk
Updated: 12:22 EDT, 4 April 2011

17.15 (close)

Aggreko led the FTSE 100 Index further above the 6000 level today after it was lifted by a deal to supply power to the firm that ran the crippled Fukushima power plant.

The temporary power supplier move 5%, or 84p higher to 1678p, after it announced will supply 200 megawatts of both gas and diesel-fired power to Tokyo Electric Power Company Incorporated (Tepco) for a minimum one-year term from June.

The Footsie, which gained more than 100 points on Friday following a cheery US unemployment report, added another 7.1 points to 6017 as it was also led higher by the mining sector and resurgent retail stocks.

The pound was up against the US dollar and the euro after construction figures revealed that input prices rose to a 31-month high, increasing speculation that the Bank of England will raise interest rates.

Sterling was at 1.61 against the greenback and 1.13 against the single currency.

Higher commodity prices helped mining stocks make advances, with silver miner Fresnillo the session's second biggest riser, up 46p to 1611p, while Eurasian Natural Resources added 8p to 965p.

They were joined on the risers board by a clutch of blue chip retail stocks as the sector attempted to shrug off the dire updates of last week.

B&Q owner Kingfisher, which recently delivered resilient trading figures, rose 4.7p to 258.5p while fashion chain Next added 46p to 20465p and Tesco cheered 4.8p to 393.8p.

But Dixons Retail, which warned over profits last week after worsening sales declines, dropped another 0.7p to 12p in the FTSE 250 and Comet parent Kesa Electricals was 1.9p lower at 115.8p.

Banks were lower after a critical report from MPs on the sector over the weekend and ahead of the keenly awaited spring update from the Independent Commission on Banking due next week.

Lloyds Banking Group was 0.7p lower at 60.3p, while HSBC dropped 7.5p to 647.6p and Barclays slipped 1.15p to 288.3p.

In an otherwise quiet day for corporate news, Vodafone shares - down 0.3p to 178.8p - were in the spotlight after its deal with Vivendi, which will mean Vodafone returns another £4bn to shareholders by buying back shares.

Meanwhile, a stronger than expected Markit/CIPS survey on the construction sector helped sentiment after it emerged growth fell only slightly in March.

With the sector finishing the first quarter of 2011 on the front foot, shares in housebuilder Taylor Wimpey were up 0.7p to 41.6p, while Barratt Developments lifted 2.8p at 115.5p and Persimmon gained 11.6p at 463.4p.

The biggest Footsie risers were Aggreko up 84p to 1678p, Fresnillo ahead 46p at 1611p, Next up 46p at 2046p and GKN ahead 4.4p at 209.1p.

The biggest Footsie fallers were Man Group down 9.4p at 243.7p, Essar Energy off 11.3p at 461.6p, Randgold Resources down 95p at 5105p and Autonomy Corporation down 26p at 1577p.

16.00: With the end of play in sight, the FTSE 100 is 17.7 points higher at 6027.64.

14.35:

Over on Wall Street, the Dow Jones has opened maginally higher - gaining 9 points to 12,385.6.

Back in London, the FTSE 100 is 19.9 points higher at 6029.79.

13.35:

Banks are putting in a mixed performance as investors waver in support ahead of news on possible reforms from the Independent Commission on Banking next week.

Lloyds Banking Group is trading down 0.37p at 60.63p, while HSBC dropped 4.5p to 650.6p. Barclays, however, was up 2.15p to 291.6p.

Retailers are looking healthier as they recover from gloomy updates from the High Street last week.

B&Q owner Kingfisher, which recently delivered resilient trading figures, rose 3.25p to 257.05p while fashion chain Next added 21.5p to 2021.5p and Tesco cheered 3.6p to 392.6p.

But Dixons Retail was down 1.2p to 11.6p and Comet parent Kesa Electricals was 0.9p lower at 116.8p.

Meanwhile, a stronger than expected Markit/CIPS survey on the construction sector helped sentiment after it emerged growth fell only slightly in March.

With the sector finishing the first quarter of 2011 with strong growth, shares in housebuilder Taylor Wimpey were up 77p to 41.7p, while Barratt Developments lifted 1p at 113.7p and Persimmon gained 12.7p at 464.4p.

The FTSE 100 is up 21.2 points at 6,031.1.

Futures trading points to a higher opening on the Dow Jones later as US investors remain in upbeat mode following the stronger than expected jobs growth figures for March released last Friday.

12.25:

At lunchtime, the FTSE 100 is holding abvove 6,000 - 11.9 points better off at 6021.85.

There is significant news today from index giant Vodafone. Shares in the telecoms company rose 1.55p to 180.65p after it unveiled the long-awaited deal to offload its 44% holding in SFR to Vivendi for £7bn.

Vodafone plans to return £4bn of that to shareholders.

We've got the full story here.

11.10:

The Footsie remains in the black, just, up 8.12 points to 6018.04.

One stock doing well is power firm Aggreko. It has signed a deal to help supply Japanese consumers and industry following the devastating earthquake and tsunami last month.

Shares in the Glasgow-based firm are up 5% or 75p at 1,669p in trading today. Here's more.

In currency today, the pound is at $1.6140 compared to $1.6130 at the previous close. Against the euro, the pound is €1.1360 compared to €1.1347 at the previous close.

09.25:

The FTSE 100 has hung onto the strong gains from the end of last week, with Vodafone and miners leading the way.

Vodafone's £7bn deal to sell its stake in French firm SFR sparked share gains for the mobile giant today

Blue-chip heavyweight Vodafone rose 2% on its agreement to sell its 44% shareholding in the French mobile phone operator to Vivendi, ending months of talks.

The group was joined on the way up by miners and banks in London's top tier, which edged another 2.4 points higher to 6012.4 having rallied more than 100 points on Friday thanks to a cheery US unemployment report.

Barclays led gains for financials, up 4.8p to 294.3p, with the sector enjoying a buoyant session despite a critical report from MPs on the sector over the weekend and ahead of the keenly awaited spring update from the Independent Commission on Banking due next week.

Fresnillo was a strong riser in early trading, up 46p, or 3%, to 1,611p.

In an otherwise quiet day for corporate news, Vodafone's deal means it will return £4bn to shareholders by buying back shares, ensuring the stock rose 3.2p to 182.3p.

Elsewhere, retailers failed to shrug off concerns after last week's dire spate of updates from the sector.

Dixons Retail, which warned over profits last week after worsening sales declines, dropped another 0.1p to 12.6p, while rival Comet parent Kesa Electricals was 1.9p lower at 115.9p.