Mining stocks boost FTSE

Mining stocks led the FTSE 100 Index above the 5700 mark again today as it clawed back losses made earlier in the week.

Traders were unfazed by the news from the Bank of England that suggested a quick cut in interest rates looked unlikely and instead welcomed an update from copper miner Antofagasta.

They were also encouraged by renewed growth prospects for the UK economy on the back of better than expected GDP figures which helped send the Footsie up 70.6 points to 5704.4.

The bullish mood spread and the FTSE 250 Index smashed through the 9000 barrier for the first time to a record high of 9058.2, up 129.2 points in the day.

In the top flight, Chilean copper miner Antofagasta led the way – up 7% or 137p to 2052p – after it said quarter on quarter production rose 7%.

The positive sentiment spread to other mining stocks with Xstrata following Antofagasta up the blue chip risers board with gains of more than 5% or 84p to 1615p after an upgrade from Citigroup.

BHP Billiton was not far behind – up 48p to 1048p – while Anglo American cheered 87p to 2073p and Rio Tinto jumped 112p to 2956p.

Interest also surrounded gas firm BOC which benefited from speculation that a bidding war might be on the way.

Shares in BOC raced 4% higher or 61p to 1455p after it rejected an approach from German firm Linde worth £15 (€21.88) a share or £7.6bn (€11bn). It followed a 20% improvement in share price yesterday.

It was a good day for Yellow Pages owner Yell after heavy losses yesterday following a report from the Competition Commission which warned that the company’s dominance was hurting smaller rivals. Shares bounced back today to stand up 24.75p at 532p after an upgrade from Morgan Stanley.

Vodafone was another to recovery heavy losses yesterday as it moved 2% higher - 2p to 119.75p – amid hopes that chief executive Arun Sarin may yet sanction the sale of the company’s 45% stake in US mobile phone company Verizon Wireless.

Banking stocks were in focus following optimistic comments from lender Northern Rock. It got the banking results season off on the right note after posting profits at the top end of expectations and forecasting a similar improvement in the year ahead.

Shares lifted 43p to 981p, and with bad debts also appearing to be under control, investors had every reason to buy into sector heavyweights such as HBOS, which gained 24.5p to 975p.

The comments from Northern about a pick-up in the housing and mortgage markets were echoed by Crest Nicholson after the developer said underlying profits fell in line with forecasts and that it was cautiously optimistic for 2006.

The specialist in brownfield projects rose 2%, or 11p to 473p, while top flight stock Persimmon added 3% or 41p to 1263p and second tier rivals George Wimpey and Taylor Woodrow rose 27.25p to 518p and 19.5p to 404.5p respectively.

The day’s biggest top flight risers were Antofagasta up 137p to 2052p, Xstrata up 84p to 1615p, Royal & Sun Alliance up 6.25p to 124.75p and Yell 24.75p ahead at 532p.

The session’s heaviest fallers were DSG International off a penny at 172.5p, P&O down 2.5p to 507p, PartyGaming down 0.5p to 148.5p and Enterprise Inns 3p lower at 941.5p.