logo-loader

FTSE 100 closes higher with miners but fresh record high eludes

Last updated: 17:15 25 Oct 2016 BST, First published: 06:52 25 Oct 2016 BST

Rising stock market

London’s FTSE 100 index closed higher thanks to miners, but well off a late surge as a fresh record high eluded it.

The blue-chip FTSE 100 closed up 0.5% at 7017. The highest-ever close for the ticker was 7103.98 on 27 April 2015. The easing of the index into the closing hour came as expected heady US stocks slipped under the sheer weight of Q3 corporate earnings, weakening US consumer confidence data and Goldman Sachs had some sobering forecasts for S&P 500 earnings.

Back in London, Anglo American (LON:AAL) led the pack since before midsession, rising 4.6% to 1114p on the strength of a well-received output report which left most of its targets unchanged.

Other miners followed in its shadow. Rio Tinto (LON:RIO) was second, up 4.5% to 2796p and Glencore (LON:GLEN) third, up 3.6% at 246.15p, Randgold Resources (LON:RRS) up 3.1% to 7200p, BHP Billiton (LON:BLT) up 3% to 1261p and then Antofagasta up 3% to 540.5p.

On the flipside of the FTSE 100, Costa Coffee owner Whitbread (LON:WTB) dropped 3.8% to 3699p despite announcing a 3.4% rise in half-year profits to £263.6mln, making it the worst performer on the index.

Builders merchant Travis Perkins (LON:TPK) remained a faller, down 3.3% to 1346p while in third place was engineering group GKN (LON:GKN) which also fared badly after warning of a tougher macro-economic environment. Its shares fell 2.9% to 313.9p.

Even national broacaster ITV (LON:ITV), open to a bit of bid chatter, lost steam late in the session to close down 0.05% at 171.81p.

The mid-cap FTSE 250 ended down 0.3% at 17,801 but still 800 points above where it began the year and even higher than where it was just ahead of the June 23 EU referendum result for Brexit.

Phoenix Group Holdings (LON:PHNX) did anything but rise from the ashes, as the stock was the biggest mid-cap faller of 11.6% to 756p.

The insurer which a month ago said it planned to buy unit-linked fund manager Abbey Life from Deutsche Bank announced on Tuesday that pursuant with that aim 144,727,282 new shares were admitted to listing on the premium segment of the Official List of the UKLA and were admitted, nil paid.

The FTSE AIM 100 Index ended up 0.1% at 3958 while the FTSE AIM All-Share Index advanced by 0.04% to 825.

Winners and losers across the bourse were neck-and-neck at 32%.


 

Midsession

  • Sky and ITV in the shop window 

  • Miners in demand, Whitbread out of sorts

  • FTSE 100 jumps 79 as mood brightens

 

FTSE 100 headed was ending the afternoon session in fine fettle with the index of blue-chip shares up 79 points at 7,065 as US markets rallied after a weak start.

Gold rose US$3 to US$1,268 per ounce as Goldman Sachs highlighted that a lower yuan might spur China's demand for the precious metal.

Concern over the health of the Italian bank sector also saw some safe haven buying of gold as shares in Monte dei Paschi di Siena were suspended after huge swings in the share price.

That followed a rescue plan for the beleaguered bank that would see 2,500 jobs go, 500 branches close and a €28bn sale of bad loans.

Italy’s banks collectively hold around €270bn of non-performing loans.

Oil futures eased slightly with West Texas Intermediate December contract quoted a few cents lower at US$50.47.

 

FTSE 100 makes headway, Sky and ITV in the shop window...1.45pm

The brokers have had time to weigh up the potential impact AT&T's £70bn bid for Time Warner might have on this side of the pond - and Sky PLC (LON:SKY) and ITV PLC (LON:ITV) should both be wary of predators.

Peel Hunt reckons the vulnerable to an opportunistic bid – although it doesn’t specify where takeover approaches might come from.

Counting against them being taken out is the fact that both have influential major shareholders.

UBS, meanwhile, has taken a closer look at the strategic reasoning behind AT&T’s bid for movie and TV giant Warner.

In short, the deal offers the American telco the opportunity to provide “differentiated content” and the Swiss house thinks it may spark M&A activity here in Europe.

“We see Sky as a beneficiary of convergence as it benefits from additional distribution/wholesaling opportunities with the telecom operators and Sky has a critical mass of premium content in the UK, Italy and Germany for a relatively lengthy window,” said UBS analyst, Polo Tang.

The FTSE 100, meanwhile, entered the afternoon session in fine fettle with the index of blue-chip shares up 33 points at 7,020.08.

Leading the way were the miners after a better-than-expected update from Anglo American (LON:AAL). Whitbread (LON:WTB) was in the doghouse after its  results failed to get the City stoked up.

At 10.15am....

  • FTSE 100 advances 31 to 7,017

  • Miners on the march after Anglo American update

  • Whitbread fails to inspire 

 

The FTSE 100 was going well in the morning adding 31 points to 7,017, buoyed by the mining sector.

Anglo American PLC (LON:AAL) led the pack after it weighed in with a better-than-expected update on current trading. Shares rose 4% to 1,105p.

Among the top risers was Shoe Zone PLC (LON:SHOE) as it reported trading had gone well in the second half of the year. Shares rose 15% to 164.2p.

Pantheon Resources Plc (LON:PANR) rose 18% to 112.3p on a possible new oil reservoir in Texas, while Beximco Pharmaceuticals Ltd (LON:BXP) rose 19% to 54p as it received US Food and Drug Administration (FDA) approval for Sotalol Hydrochloride, a generic version of the cardiovascular drug Betapace.

 

FTSE 100 led higher by miners, Costa Coffee owner fails to inspire market... 08.30am

The FTSE 100 got off to a decent start as it rose almost 25 points to 7,011.08, buoyed by the mining sector.

Anglo American PLC (LON:AAL) led the pack after it weighed in with a better-than-expected update on current trading. The only exception was the rather lacklustre performance of its copper operation.

While interims from Costa Coffee owner Whitbread plc (LON:WTB) were solid, they failed to inspire the market. The shares fell around 2% in early trade to top the blue-chip losers’ list.

Delving down into the FTSE 250, it was a case of ‘all quiet on the Western Front’.

Remember, the mid-cap index is host to many of our home-grown companies and been the source of most of the bad news over the last week with profit warnings from four of the index’s leading lights.

Catching the eye on AIM was a deal struck by would-be fertiliser miner Sirius Minerals PLC (LON:SXX).

It is tying up with a firm controlled by Aussie billionaire Gina Rinehart that will help part fund Sirius’ plans for a mine in North Yorkshire.

READ MORE ON SIRIUS

 

back above 7,000 (again) ... 6.50am

London’s top share index is tipped to venture back above the 7,000 mark this morning.

Having closed at 6,986 last night, the FTSE 100 is expected by spread betters to open at around 7,005, buoyed by a solid showing overnight on Wall Street, where the Dow Jones rose 0.4% to 18,223 and the broader-based S&P 500 advanced 0.5% to 2,151.

Heading into the last half hour of trading in Tokyo, the Nikkei 225 was up 0.7% at 17,355. The picture was duller in Hong Kong, where the Hang Seng was off 0.2% at 23,565.

Oil futures were off the pace in screen-based trading this morning as it looks increasingly likely that the tentative agreement among Opec members and fellow travellers to scale back output will not be ratified at next month’s meeting of the oil cartel.

Iran, which is cranking production back to pre-sanction levels, said over the weekend it should be exempt from any scaling back of production, though there have been some reports indicating it would be prepared to freeze production at current levels.

In London, on the corporate front, updates are expected from Whitbread plc (LON:WTB), Anglo American PLC (LON:AAL), GKN (LON:GKN), National Express Group (LON:NEX) and St James’s Place PLC (LON:STJ).

Costa Coffee and Premier Inn owner Whitbread said in June it was confident of making good progress in the full year, but since then the Brexit vote has changed the mood music in much of the economy.

“The group has a little work to do,” said analysts at Langton Capital. They said pressure from competitors and the difficult London market were unlikely to dissipate any time soon; however, the broker said the group had an attractive freehold base and international brands.

Around the markets.. preview

  • Sterling: US$1.2229, down 0.09 cents
  • US 10-year Treasury bond yield: 1.763%, down 0.0034%.
  • Gold: US$1,266.40 an ounce, up US$2.60
  • Oil: Brent crude at US$51.38 a barrel, down eight cents

Headlines

  • West Coast rail operator will run first HS2 trains – The Times
  • Microsoft to raise prices by up to 22% after slump in pound – The Daily Telegraph
  • AT&T and Time Warner shares fall as investors' doubts over merger grow – The Guardian
  • Dead or Alive singer Pete Burns dies, aged 57 – The Independent
     


 

FTSE rises ahead of Easter weekend, JD Sport gains on upbeat outlook -...

The FTSE 100 gained on the final morning of this shortened Easter trading week. Festive cheer was limited though, as Thames Water confirmed shareholders would not provide it with a £500 million rescue package, prompting speculation over the London supplier’s future. On a more positive...

1 hour, 39 minutes ago