Copper prices put zing in FTSE

Copper prices that have risen 60% since the start of the year and touched a new high encouraged investors to plough more money into the mining sector today.

Kazakhmys and Antofagasta were the chief beneficiaries of the cost of copper rising to $8,312 a tonne as traders speculated that it had further to go since demand from China was strong while supplies were tight.

Positive first-quarter figures from Royal & Sun Alliance also boosted the insurance sector as the FTSE 100 Index made hay, up 26.9 points to 6110.3 by mid-morning.

The Footsie was kept company by markets across Europe after preliminary data pointed to economic growth of 0.6% within the eurozone, extending a recovery by the UK’s largest trading partner that offers fresh hopes to manufacturers and exporters.

In London, Kazakhmys surged 5% or 71p to 1400p to its highest level since floating in October and was closely followed by Antofagasta, up 57p at 2582p, and Xstrata, which ticked 73p higher to 2471p.

Away from volatility in the commodities sector, insurer Royal & Sun Alliance added 2.5p to 142.75p after beating expectations for operating profits with a rise of 29% to £207m (€303.8m).

However, ITV struggled for a second session in a row amid disappointment at a 2% rise in first-quarter advertising revenues, below the 3.3% growth estimated for the wider market.

ITV shares were close to the top of the Footsie fallers board after a drop of 0.75p to 113.25p.

Outside the top flight, services group VT and engineering firm Babcock were both close to their opening marks, despite the collapse of a deal that could have led to the unification of the nation’s shipyards.

Along with BAE Systems, up 2.75p at 425p, VT had planned a £700m (€1bn) takeover of Babcock, which lifted 1.25p to 316.25p. VT stood 3.5p lower at 481.5p after the move fell through last night.

Elsewhere, estate agency group Countrywide saw its share price rise 9.75p to 557.75p after it revealed that activity levels were at a record level.