Commodity stocks boost FTSE

The apparently insatiable demand for metals and oil around the world gave the FTSE 100 Index a boost after Easter by driving commodity-based stocks higher.

BHP Billiton led the charge as its shares rose 5% to touch a new all-time high and the Anglo-Australian miner was followed by a string of property firms, which benefited from positive broker notes in the sector.

With the feelgood factor also evident on Wall Street in the opening hours of trading there, the Footsie was able to close 14.7 points higher at 6044.1.

In London, market heavyweights Royal Dutch Shell and BP rose 33p and 8.5p to 2003p and 696.5p respectively as the price of crude oil hit new highs on both sides of the Atlantic.

Stronger metal prices in Australia helped the commodity sector correct losses from Thursday, with copper specialist Kazakhmys up 41p at 1230p, Xstrata stronger by 71p at 2038p and Antofagasta ahead 94p at 2416p.

Miners accounted for five of the top six risers, with the odd one out being British Land after UBS and Merrill Lynch raised their ratings on the stock, which subsequently added 57p to 1277p. The impact was felt by Land Securities, up 22p at 1911p, and Hammerson, which rose 15p to 1183p.

Among other significant risers, BAA gained after a weekend of developments in relation to its ongoing takeover saga.

Shares were 18.5p higher at 860p as investors remained on standby for further approaches, even though BAA rejected a highly conditional approach from a consortium led by Goldman Sachs.

It valued BAA at around £9.4bn (€13.6bn), compared with the £8.75bn (€12.7bn) already on the table from Spanish firm Ferrovial.

Also in the aviation sector, British Airways rose 4.25p to 341.25p as investors responded positively to the sixth increase in its fuel surcharge since May 2004 as it battled to protect its profits from rising costs.

Investors initially gave a positive reception to a first quarter revenues update from PartyGaming but quickly took money off the table to leave the stock 2% lower, or 2.75p at 149p.

Revenues were up 54% but analysts said the continued threat of legislation in the United States continued to hang over the company.

While other news in the corporate arena was thin on the ground, packaging group DS Smith dived 14% after it warned of shrinking profits amid “extraordinarily high energy costs”. The guidance left shares 24p cheaper at 144.5p.

Another company affected by rising energy costs, Northern Foods, fell 3.75p to 88.75p, while Premier Foods dipped 3p to 286.75p.

The FTSE 250 Index was still in positive territory, however, as Burren Energy rose 82.5p to 996.5p and miner Randgold Resources cheered 94p to 1284p.

The day’s biggest blue-chip risers were BHP Billiton up 56.5p to 1180.5p, British Land ahead 57p at 1277p, Antofagasta up 94p to 2416p and Rio Tinto up 117p to 3177p.

The heaviest fallers were Pearson off 17.5p to 760p, ITV down 2.25p to 114.5p, Alliance & Leicester off 22p at 1121p and Tate & Lyle down 10.5p to 555.5p.