FTSE enjoys strong gains

Demand for mining stocks and stabilising oil prices helped the London market post solid gains today.

A late rally helped the FTSE 100 Index build on earlier progress to close 57.4 points higher at 4471.8.

Reports that the world’s leading oil exporters were set to agree a rise in their output quota lifted shares by easing fears over recent sky high prices.

And mining stocks were in favour after China hinted that it would delay an interest rate hike.

Another rise in the cost of borrowing was looming today after it emerged a Bank of England committee considered hiking rates by 0.5% earlier this month.

Trading in New York – where the Dow Jones Industrial Average was 100 points above its opening point by the close in London – gave further impetus to the Footsie.

Mining stock Antofagasta topped the Footsie risers with a 62p climb to 898p. It was followed by Xstrata up 41.5p at 669p, Anglo American rising 65p to 1137p and BHP Billiton 25.5p stronger at 462p.

British Airways was also on the way up, rising 13.25p to 263p while chemicals group ICI gained 6p to 204.5p. Both stocks have been hit by concerns over high oil prices in recent days.

Shares in Scottish and Southern Energy (SSE) rose 12p to 684.5p after it posted profits at the top end of market expectations.

And investors in Sainsbury’s took heart from the new chief executive’s announcement of a shake-up of the supermarket chain’s management team.

The news, which came as the firm posted a 2.9% fall in profits for the last year, sent shares 5p higher to 274.75p.

Stocks in negative territory included oil giants Shell and BP – down 3.5p and 2.25p to 397.25p and 485.5p respectively.

The heaviest faller, however, was Rentokil Initial after the pest control group announced that 2004 profits would be well down on last year. The update spooked investors as shares tumbled nearly 14% or 24p to 151.5p.

The highest risers in the Footsie today were Antofagasta up 62p to 898p, Xstrata rising 41.5p to 669p, Bradford & Bingley cheering 16.25p to 283.75p and Anglo American 65p higher at 1137p.

The heaviest fallers were Rentokil Initial 24p lower at 151.5p, Unilever down 11.5p at 512p, Diageo off 11p at 726p and AlliedDomecq weakening 3.5p to 447.25p.

Meanwhile in Paris the Cac-40 index closed up 69.8 at 3638.9 while in Frankfurt the DAX 30 closed up 83.0 at 3872.3.

The Eurotop 100 index closed up 32.8 at 2154.5.