Mining stocks pull FTSE up 20

Booming demand for metals in China sparked a flurry of interest in mining stocks and helped the FTSE 100 Index to advance today.

BHP Billiton set the pace following strong Chinese industrial data and an upgrade by broker ABN Amro, which said the miner’s strength in Australia should underpin earnings momentum for at least 18 months.

Shares in BHP rose 4% and with copper producer Antofagasta and steel giant Corus also stronger, the Footsie rose 20.3 points to 5039.8 by mid-morning.

Sentiment was helped by a positive close on Wall Street last night and weaker oil prices, while there were no shocks from UK retail sales data today.

BHP shares lifted 26p to 713p on a day when Antofagasta cheered 42p to 1224p as copper prices moved close to a record high. Other metals firms to benefit from the upbeat mood were Rio Tinto, up 42p to 1722p, and Corus ahead by 1.5p to 43.75p.

Profit takers pounced on cigarette makers after their strong showing yesterday, with British American Tobacco heading the Footsie fallers – off 23.5p at 1075.5p. Imperial Tobacco also retreated 30p to 1501p and Gallaher faded 10.5p to 848p.

Little in the way of corporate news in the top flight meant investors were able to check on the lower tiers.

Troubled car rental firm Avis Europe saw its shares slump 11% as it unveiled plans to raise £110.5m (€134m) to help arrest the slump in its profits. Shares were down 6.75p to 56.25p as traders mulled the dilutive effect this would have on their stock.

But shares in marketing group Documedia nearly doubled in price after it announced plans to join forces with a printing firm set up by former ITV boss Michael Green. Documedia was 5.13p stronger at 11p.