Miners and BA help FTSE surge

Strong gains by the mining sector and British Airways pushed the FTSE 100 Index through the 6200 mark today.

The Footsie was up 35.5 points to 6228 leaving it within touching distance of a return to last month’s six-year high of 6254.

The surge by miners followed a positive broker note on Xstrata while BA took off after Australian airline Qantas ended its resistance to a takeover approach from investment bank Macquarie.

Paul Webb, a trader at CMC Markets, said: “After some decent opening gains, the Footsie has held broadly level through the session and is once again sitting above the psychologically important 6,200 level with many now eyeing the mid-November highs of 6,260.”

Xstrata was up nearly 6% or 136p to 2513p after the note from Morgan Stanley highlighted rising commodity prices and the growth available to the firm following a major acquisition. It was followed up by rival Antofagasta, which gained 14.25p to 529.5p, and Rio Tinto, up 67p to 2850p.

BA joined the miners on the leaderboard with a gain of 9p to 519p after Qantas bowed to the approach from Macquarie. Investors think that if Qantas is susceptible to a takeover approach, then so too is BA.

Halifax Bank of Scotland was also higher after it said profits were ahead of expectations and that it would return another £500m (€745.8m) to shareholders.

HBOS shares were ahead by nearly 2% or 17p to 1101p, although with trading updates from other banking groups already out of the way the news from HBOS did not have a major bearing on the banking sector.

Alliance & Leicester was up 16p to 1118p and Northern Rock rose 14p to 1172p, but Royal Bank of Scotland slipped 13p to 1980p.

BT shares gathered strength after it said profits growth at its retail arm would be three times higher than City analysts had been expecting at the start of the year. The improved guidance resulted in a rise of 1.75p to 305p.

Elsewhere, shares in Trinity Mirror were lower after it announced plans to sell the Racing Post and a clutch of regional titles. Despite producing a solid trading update, shares were down 5% or 25.25p to 472.5p.

Shares in EMI slumped by nearly 11%, or 32.25p to 268p, after it said the latest takeover attempt came to nothing.

EMI, which boasts a roster including Robbie Williams, Coldplay and the Rolling Stones, said talks with a potential offeror were now over after the proposal failed to reflect its value and prospects.

Private-equity firm Permira is thought to have been behind the approach, which reportedly valued the London-based company at £2.5bn (€3.7bn).

The day’s biggest blue chip risers were Xstrata up 136p to 2513p, Antofagasta 14.25p higher at 529.5p, Icap up 12.25p to 487.75p and British Energy, which gained 12.5p to 512.5p.

The heaviest fallers were Cairn Energy off 94p to 1946p, Smith & Nephew down 11.5p to 482.5p, Cadbury Schweppes 6p lower at 539p and Alliance Boots down 6.5p to 833p.