FTSE boosted by mining shares

Higher metal prices boosted mining stocks today as the London market ended the week on a positive note.

Rio Tinto topped the blue chip risers’ board as copper and lead prices reached record levels and aluminium climbed to a 17-year high.

And with a better-than-expected update from Alliance & Leicester cheering investors, the Footsie rose 42 points to 5528.1 at the close of play.

CMC Markets head of trading Jimmy Yates said: “Overall it’s been a reasonable week for London’s blue chips. The fact that we are sustaining a run close to the 5500 level and have bounced back well from the month-end profit taking is certainly encouraging news.”

Rio Tinto was up 103p at 2505p and was followed by BHP Billiton, up 24p to 903p, Xstrata – 38p ahead at 1388p, and Antofagasta, up 49p to 1738p.

The major corporate news of the day came from A&L when it indicated that the market’s consensus of £506 million for annual operating profits was too low. Shares in A&L lifted by 24.5p to 924.5p – their highest level for nine months.

Northern Rock and Royal Bank of Scotland followed A&L north, up 8.5p to 852p and 4p to 1680p respectively, but there was no change for HSBC and HBOS was off 7p to 875p.

Artificial hip and knee maker Smith & Nephew topped the blue chip leaders board as it benefited from bid speculation, with Johnson & Johnson being cited as a possible suitor. Shares cheered 23p to 539.5p.

The market would have risen further had a clutch of heavyweights not gone ex-dividend, meaning shareholders have lost the right to the most recent payout.

Vodafone was among them but its shares were hurt more by broker Credit Suisse First Boston reducing its recommendation on the stock to neutral and lowering its target price. Shares in the mobile phone giant fell 3p to 122.75p to make it the session’s heaviest faller.

Retailers Kingfisher and GUS – the owner of Argos – were in negative territory, down 1.75p to 221.25p and a penny to 906p respectively.

Elsewhere, ports and ferries group P&O shares surged 12% or 51p to 494p amid speculation that a fresh bid could be made to rival the 443p a share offer from Dubai Ports World.

And shares in civil engineering firm John Laing were at their highest level in four years following news of a potential takeover approach. Shares were up 16% or 48p to 341p.

Electronics maker Alba hauled back losses of 4% earlier in the session to stand 4.75p higher at 349.5p, even though it posted losses of £6.6 million for the first half of its financial year.

And Wolverhampton & Dudley Breweries slipped 23p to 1239p as revelations that its record of sales growth was under threat from weaker consumer confidence overshadowed higher annual profits.

The session’s biggest blue-chip risers were Smith & Nephew up 23p to 539.5p, Rio Tinto ahead 103p to 2505p, Shire up 29p to 733p and Sage Group up 7.5p to 243p.

The heaviest fallers were Vodafone off 3p to 122.75p, Reed Elsevier down 5.5p to 518p, HBOS down 7p to 875p and Kingfisher down 1.75p to 221.5p.