Another five year high for FTSE
Investors in mining stocks who braved the sharp fall in silver and other commodity prices yesterday were rewarded today as the FTSE 100 Index hit another five-year high.
Miners occupied the top three spots on the blue-chip risers board with gains of 5% for both Antofagasta and Xstrata as the Footsie added 51.3 points to close at 6132.7.
There was also strong demand for oil stocks with BP and Royal Dutch Shell advancing 11.5p and 44p to 712p and 2043p respectively.
Jimmy Yates, a trader at CMC Markets, said: “Although both oil and gold are now sitting a little way off recent highs, there are still no solid suggestions that we’re going to see a retreat back from recent levels and despite the associated inflationary concerns the index remains in a bullish mood.”
Antofagasta led the way for the miners by advancing 120p to 2468p, while Xstrata ticked 91p higher to 2087p and Kazakhmys lifted 51p to 1239p.
Among other risers, National Grid was 6p brighter at 577p, as investors digested market speculation that it could attract a takeover bid.
Media group Pearson lifted 3.5p to 761p after it said it was on course to match the 4% profits growth of last year. Chief executive Marjorie Scardino said she expected 2006 to be another good year as the company continues to increase margins and grow ahead of its markets.
British Airways also continued to strengthen following news of its plans to slash fares in the short-haul market. The stock lifted 0.25p to 340.5p.
Also in the air travel sector, BAA slipped 0.5p to 863p on the day that Ferrovial started the formal bid process for its takeover offer by posting a document to shareholders. BAA again said it rejected the proposal.
On a quiet day for corporate news, media and advertising group WPP gave back some of its recent strength with a drop of 5.5p to 701p.
Analysts described first quarter sales figures from the group as strong but said there was no material news to drive upgrades and prevent investors from engaging in a bout of profit-taking today.
Elsewhere, Associated British Ports rose 2.5p to 734p as a report in the Daily Telegraph said the company had drawn a second takeover approach from Goldman Sachs – on this occasion priced at 775p a share.
AB Ports rose by as much as 13p earlier in the session but dropped back amid signs that the offer would not be enough to satisfy the company’s board.
Meanwhile, investment services group Icap surged 11% up 51.5p to a new high of 528.75p as it unveiled a deal to buy foreign exchange and commodities platform EBS for $775m (€628m).
The day’s biggest blue-chip risers were Antofagasta up 120p to 2468p, Xstrata ahead 91p to 2087p, Kazakhmys up 51p at 1239p and Smith & Nephew lifted 17.5p to 518.5p.
The heaviest fallers were Enterprise Inns off 12.5p to 928p, Prudential down 8p to 657p, Old Mutual off 2.25p to 196.25p and Friends Provident down 2p to 196.75p.
