Metals keep the FTSE solid

Higher metals prices helped mining stocks lead the London market higher today.

Overnight advances for base metals such as copper and zinc as well as higher gold prices this morning helped the heavily-weighted sector drive the FTSE 100 Index.

By mid-morning, the Footsie was 44.9 points ahead at 6677.9, consolidating gains after a late rally in New York overnight gave markets early impetus.

Antofagasta was the leading riser, with a gain of nearly 5%, or 39p, to 875.5p. Sector peers also making progress included Xstrata, up 113p to 3568p, and Rio Tinto, which rose 131p to 4539p.

Kazakhmys, which has endured a difficult week after warning of disruption to production, was another beneficiary of the positive sentiment and rose 35p to 1559p.

Meanwhile oil major BP gained 9p to 589p today amid reports that chief executive Tony Hayward is to unveil an overhaul of the company’s structure to improve performance.

Insurer Resolution, which last night rejected a £4.5 billion approach from rival Pearl Assurance, was also among the gainers. Hopes of a higher saw Resolution gain 11p to 691p.

Software group Sage provided the biggest fall in the top flight, with shares 15.25p lower at 236.5p after its latest revenues update came in below some forecasts in the City.

Elsewhere, Northern Rock – a strong gainer in recent sessions as rescue hopes for the stricken lender grow – slipped back 4%, or 11.5p, to 262p from recent highs.

In the FTSE 250 Index, recruitment group Hays rose 2% after fee growth of 21% for the first quarter of the financial year bettered expectations. Shares were 3.5p higher at 146.25p.

Chocolate retailer Thorntons saw its shares jump 8% – 13p at 185p – after sales figures indicated further progress with its turnaround plan.