FTSE close to break even

The FTSE 100 Index hovered close to the break-even mark today as record copper prices fuelled a fresh round of investment in the mining sector.

Xstrata was the chief beneficiary of the price of copper moving within a whisker of $7,000 (€5,600) a tonne, while precious metals such as gold were also more expensive today than they were at the end of last week.

Stronger oil stocks were balanced by weakness among banks as the sectors each account for 20% of the Footsie, which slipped 3.7 points to 6129 by mid-morning.

Xstrata rose 4% or 84p to 2171p on the back of the high copper prices, which have been driven by strong demand and the potential for supply disruptions in key producing nations such as Chile.

It was followed higher by rival Anglo-American – up 45p to 2505p – while BG Group put on 21p to 801p and Cairn Energy ticked 57p higher to 2456p in the oil and gas sector.

Telecoms giant BT lifted 4.5p to 217.75p after calming fears about the strength of its pensions fund. It told investors that an actuary had estimated that three-quarters of the fund’s £37bn (€53.5bn) liabilities could be guaranteed by the Government under a promise given at the time of its privatisation.

But high street banks were prominent among the fallers as investors took profits, with Halifax and Bank of Scotland owner HBOS down 14.5p to 953p and HSBC losing 14.5p to 950.5p.

Elsewhere, record label EMI lifted 6% or 15.5p to 293.75p on a weekend report that on-off talks were about to restart on a merger with US rival Warner Music.

HMV gained 4% or 6.75p to 178p after Tim Waterstone went public with a £280m (€405m) proposal to buy back the Waterstone’s book chain that he founded in 1982. His indicative offer – first tabled in February – is conditional on HMV dropping its interest in Ottakar’s.