Energy, mining stocks lead FTSE charge

Energy and mining stocks led the recovery in London today as the FTSE 100 Index regained some of yesterday’s heavy losses.

The Footsie stood 39.9 points ahead at 5207.7 by mid-morning after shedding 96.1 points when it hit its lowest level in three months in the previous session.

The market warmed to positive developments across the Atlantic, where the Dow Jones Industrial Average climbed 128 points last night on the back of encouraging earnings announcements and upbeat comments from the Federal Reserve on the US economy.

Cairn Energy led the resurgence among blue chip stocks in London after being hit hard yesterday, despite a slight fall in the cost of crude.

Its share price was up 8% or 124p to 1716p, as the whole sector rallied with news of a £1.2 billion bid for midcap explorer Paladin Resources, whose share price leapt 28%.

BG Group was up 4% to 490.5p, while BP and Royal Dutch Shell cheered 10p and 21p to 618p and 1781p respectively. Together, BP and Royal Dutch Shell make up about a fifth of London’s top flight.

Mining stocks were also in the ascendancy after upbeat economic news from China, the world’s largest importer of commodities. BHP Billiton was up 18p to 802.5p while Rio Tinto moved 42p higher to 2176p.

Poker giant PartyGaming was the second biggest riser of the day, up 5% or 4p to 82p as fluctuations in the online gaming market continued.

Insurer Legal & General was another big riser, up 2.75p to 105.5p, as it said third quarter sales jumped 31% to £327m (€577m) after claiming a greater slice of the UK life and pensions market.

And supermarket group Morrisons cheered with its first half results despite racking up half-year losses of £73.7m (€130.1m). Investors welcomed the increased certainty offered by the figures as shares climbed 4.75p to 171.75p, while rival Sainsbury’s was up 1.5p to 279p.

On the downside, shares in Cadbury Schweppes fell 8.5p to 538.5p, with traders seeing some switching into Swiss peer Nestle following better than expected nine month sales figures.