FTSE cheered by mining promise

Mining giant Anglo American put the London market in a good mood today by promising to return $1bn (€828.6m) to investors next year.

Shares in Anglo American advanced 5% or 75p to 1638p after it unveiled the outcome a strategic review, which includes reducing its involvement in gold mining in South Africa.

It was followed higher by rivals in the sector as Antofagasta produced third-quarter figures in line with hopes, helping the FTSE 100 Index to rise 53.1 points to 5235.2 by mid-morning.

Among those to advance were BHP Billiton – up 26.5p to 831p – Xstrata rising 24p to 1330p and Rio Tinto ahead by 32p at 2160p. Antofagasta, which said copper production was 6.9% higher between July and September, lifted 3p to 1470p.

The oil sector was also attracting investors with heavyweights BP and Royal Dutch Shell ahead by 17p and 37p to 626p and 1783p respectively.

Among companies reporting today, insurer Prudential was slightly lower after its new boss mapped out his plans for the group with a pledge to retain ownership of the internet bank Egg. Shares fell 2% or 9.5p to 476p.

Norwich Union owner Aviva suffered from the dip in sentiment as it faded 3p to 645p ahead of new business figures for its life and pensions division tomorrow, which are expected to be around £16.35bn (€24.1bn) in total.

Outside the top flight, biotech firm Cambridge Antibody Technology was 5% or 36p higher at 711p after settling its long-running dispute with US firm Abbott over the royalties it is paid on its Humira arthritis drug.

Tour operator First Choice cheered 2.5p to 193p as its said revenues for the winter season were 6% ahead in its mainstream business following a 39% hike in sales of long-haul flights.