FTSE close: RBS, Capita up; miners rally

 

The London market was boosted today by a winning combination of strong Chinese trade data, hopes of a deal to solve Greece's debt crisis and solid earnings reports.

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The FTSE 100 Index closed more than 1% or 73.9 points higher to 6018.8 after banking stocks were boosted by a report which indicated Greece was to receive a fresh round of aid to combat its debt mountain.

Elsewhere, miners were lifted by figures from China, which showed its global trade surplus widening to 11.4bn US dollars (£7bn) in April, as import growth fell amid government efforts to cool an overheated economy and exports rose by nearly 30%.

In the US, traders' confidence was lifted by Microsoft's takeover of internet telephone service Skype for 8.5bn US dollars (£5bn).

The pound slipped back on fears the Bank of England will downgrade its growth forecasts in its quarterly inflation report tomorrow. Sterling was down against the US dollar at 1.63 and off against the euro at 1.13.

Mining stocks also benefited after bargain hunters moved in following last week's slump in commodity prices, with Xstrata 22.5p higher at 1442p, Rio Tinto ahead 100p at 4243p and Antofagasta up 17p to 1220p.

The improved outlook in Greece helped banks recover from disappointment over a decision by the British Bankers' Association to abandon a legal battle over the mis-selling of payment protection insurance.

Royal Bank of Scotland was ahead 0.8p to 42.5p, Lloyds Banking Group was up 1p at 54.6p and Barclays advanced 4p to 277.9p.

Strong corporate updates from Imperial Tobacco, InterContinental Hotels and Capita also improved sentiment.

Imperial Tobacco was near the top of the risers board, up 3% or 67p to 2218p, after a strong performance from emerging markets boosted first-half profits.

And support services firm Capita was 5.5p higher at 741p after it reported a record bid pipeline and signs of recovery in demand from public sector clients.

Intercontinental Hotels, the world's biggest hotel operator by number of rooms, also posted strong first quarter results.

It revealed that the uprisings in the Middle East and the recent earthquakes in Japan and New Zealand will hit full year operating profit by up to 20m US dollars (£12.2m). But it said it expected strong trading in the Americas and Asia Pacific to offset the hit. Shares were up 49p to 1298p.

Gas and oil exploration giant BG was one of the few top flight companies to sink into the red after a disappointing update.

It posted a sharp fall in profits after it took a charge of 265m US dollars (£162m) to reflect a rise in North Sea offshore drilling tax to 32%, from 20%, announced in the March Budget. Shares were down 23p to 1412.5p.

The biggest Footsie risers were Schroders up 93p to 1750p, Intercontinental Hotels ahead 49p at 1298p, Sage up 10.2p at 296p and Reed Elsevier ahead 17.5p at 549.5p.

The biggest Footsie fallers were BG Group down 23p at 1412p, Resolution off 1.1p at 296.3p, Vodafone down 0.5p at 169.6p and GlaxoSmithKline off 1.5p at 1302p.

15.25: Over on Wall Street, the Dow has opened higher and is currently 61.79 points up at 12,746.47.

Meanwhile the Footsie is 68.18 points up at 6011.01.

More corporate news, this time from N Brown. The group which owns clothing websites Figleaves and High & Mighty is to trial three high street stores for its Simply Be brand later this year.

The plans emerged as the company, whose other brands include Marisota and Jacamo, revealed record revenues and profits for the seventh year in a row - up 4.2% to £718.8m and 5.5% to £98.2m respectively.

N Brown shares are 13.6 - or 4.76% - higher at 299.30p. Here's the full story.

14.30:

Shares in TUI Travel are up 6.4p at 250p in trading today.

The owner of Thomson cut its operating loss by £15m to £307m in the six months to March 31. Revenue was up 5% to £5.21bn.

Here's more.

The FTSE 100 is sticking above 6,000, now 69.89 points higher at 6012.55.

On Wall Street, the Dow Jones has predicted to open higher.

13.10:

At lunchtime, the FTSE 100 is 77.5 points higher at 6020.23.

Imperial Tobacco, InterContinental Hotels and Capita are leading an extended risers board.

The market was also boosted as banks and miners recovered some of their recent losses as concerns over the health of the global economy eased.

Mining stocks benefited after bargain hunters moved in following last week's slump in commodity prices, with Xstrata 31p higher at 1450p, Rio Tinto ahead 101p at 4237p and Antofagasta up 26.5p to 1229p.

Banks also recovered after Greece's latest ratings downgrade added to disappointment over a decision by the British Bankers' Association to abandon a legal battle over the mis-selling of payment protection insurance.

Gas and oil exploration giant BG was one of the few top flight companies to sink into the red after a disappointing update.

It posted a sharp fall in profits after it took a charge of £162m to reflect a rise in North Sea offshore drilling tax to 32%, from 20%, announced in the March Budget.

The oil and gas group was also hit by problems in North Africa, bad weather in Australia and maintenance shutdowns on two major platforms in the North Sea. Shares were down 32p to 1403.5p.

11.50:

We have more on first half results from Imperial Tobacco, which has unveiled a £500m a year share buyback plan and pledged more dividend growth.

Its stock is up 62p at 2,219p.

The FTSE 100 is trading 75.7 points higher at 6,018.4.

10.50:

Little in the way of economic data today but we do have some news on the housing market, this time from RICS.

The rise in the number of homes being put up for sale continues to substantially outstrip any increase in demand from potential buyers, according to the Royal Institution of Chartered surveyors. There are 21% more reporting falling prices than rising prices in April.

Here's more detail.

Meanwhile, the FTSE 100 is making steady progress, now 63.28 points higher at 6005.97.

09.15

The FTSE 100 had gained after Imperial Tobacco and Capita posted well-received results and miners rallied after last week's slump in commodity prices.

A decent session for corporate updates and a recovery by banks and miners helped deflect attention from worries over the global economy.

The Footsie pushed towards 6,000, rising 37.42 point to 5980.11.

Imperial Tobacco, InterContinental Hotels and Capita were among the top flight risers.

Stronger mining stocks drove the improvement after bargain hunters moved in following last week's slump in commodity prices, with Xstrata 22p higher at 1440p and BHP Billiton up 37p to 2443.5p.

Banks also recovered ground after Greece's latest ratings downgrade added to disappointment over a decision by the British Bankers' Association to abandon a legal battle over the mis-selling of payment protection insurance.

Imperial Tobacco topped the risers board, up 3% or 6.45p to 2221.5p, after a strong performance from emerging markets boosted first-half profits.

And support services firm Capita was 19.75p higher at 755.25p after it reported a record bid pipeline and signs of recovery in demand from public sector clients.

Meanwhile, set-top box maker Pace slumped 36% in the FTSE 250 Index after it said profits will be below expectations due to a poor performance in its European division. Shares were 61p lower at 92.5p.