Mining and oil stocks shore up FTSE

Positive sentiment in the mining industry and oil price highs added further momentum to the London markets today.

The FTSE 100 Index built on early gains to stand 32.3 points up at 4573.5 in mid-morning trading.

Mining stocks were benefiting from news that the world’s biggest miner, London-based BHP Billiton, had won a $3.2bn (€2.6bn) contract to supply extra iron ore to four steel mills in China.

With BHP shares adding nearly 5% or 25p to 580.5p, rival RioTinto rose 53p to 1473p, Antofagasta gained 33p to 1121p, Anglo American advanced 34p to 1308p and Xstrata put on 24p to 912p.

Oil futures changed hands for more than $50 a barrel in the Far East last night after rebels in Nigeria – the fifth biggest producer in Opec - declared “all out war” against the government from next month. The cost of crude in New York stood at $50.10 a barrel by mid-morning.

All the big British oil companies were doing well on the back of the price hikes, with Cairn Energy the biggest beneficiary in the sector, rising 37p to 1536p. BP lifting 12p to 544p and Shell moving ahead 4.75p to 413.5p.

Pubs group Mitchells & Butlers was in the money after unveiling a strong rise in sales. Shares put on 2% or 5.25p to 262.75p.

But Virgin Mobile was second in the FTSE 250 losers after warning that revenues growth would slow in the second half of the year, shedding nearly 7% or 13.5p to 195.5p.

Shares in shipping group P&O cruised ahead 6p to 253p as investors welcomed plans to close four of its 13 ferry routes and axe about 1,200 jobs.

Gift and greeting card shop chain Clinton Cards was also in clover after announcing an 18% rise in interim pre-tax profits. Shares gained more than 2% or 2p to 86p.