Mining giants send FTSE into positive territory

Mining giants added their weight to the London market today, steering blue-chip stocks into positive territory.

The FTSE 100 Index closed up 54.7 points at 6514, although a mixed-opening on Wall Street saw top tier shares retreat from highs earlier in the session.

Meanwhile a weaker-than-expected manufacturing survey from business lobby group CBI also dampened the uplift in investor sentiment.

The world’s biggest mining group BHP Billiton rose 41p to 1805p after it reported record iron ore production in the three months to the end of September.

News that it had experienced continued strong global demand, particularly from China, helped offset a dip in copper and nickel output compared to the previous quarter.

The news cheered the sector, with Antofagasta up 37.5p at 818p, Vedanta Resources ahead 96p at 2150p and Rio Tinto up 115p at 4165p.

Housebuilders – a sector out of favour in recent times amid rising interest rates and fears of a slowing market – enjoyed a rebound as stocks benefited from more positive sentiment around housebuilders from the US.

Persimmon lifted 39.5p to 988.5p and Barratt Developments gained 18.5p to 672p.

Banking stocks meanwhile were also back in favour, following an update from second tier mortgage lender Bradford & Bingley. The stock jumped 10%, or 24.5p, to 278.5p after it said it remained comfortable with its current funding and liquidity levels.

After the recent turmoil in the sector the good news helped crisis-hit mortgage lender Northern Rock gain more than 2%, or 4.4p, to 189.8p. Other gainers included Alliance & Leicester, up 23p to 750.5p, Halifax parent HBOS, ahead 18p at 843.5p, while Barclays increased 8.5p to 588.5p.

Oil giant BP was more than 1% ahead, or 7p at 612p, despite posting a 45% fall in profits in the third quarter. But analysts said the losses were not as steep as expected, adding that there may be light at the end of the tunnel for the company after recent production and refining problems.

Moving in the opposite direction, softer oil prices saw Royal Dutch Shell dip 0.5p 659.5p.

Supermarket group Tesco led a handful of Footsie fallers, down 10.25p at 453.75p, while Vodafone gave back some of its gains from the previous session - off 2.1p at 177.6p.

In the FTSE 250 Index, car dealership Inchcape jumped almost 7%, or 29.5p, to 476.75p after it reported continued sales growth in the third quarter of the year.

Department store group Debenhams lifted 0.25p to 103.75p after it said like-for-like sales had improved by 2.1% since the start of September.

Elsewhere, football kit maker Umbro surged more than 15%, or 25.25p to 190.25p, after it agreed to a £285 million takeover by sportswear giant Nike.

The leading Footsie risers were Antofagasta up 37.5p to 818p, Vedanta Resources ahead 96p to 2150p, Persimmon up 39.5p to 988.5p and Friends Provident ahead 6.9p to 173.1p.

The leading Footsie fallers were Tesco down 10.25p to 453.75p, SABMiller off 17p to 1419p, Vodafone down 2.1p at 177.6p and DSG International off 0.7p to 120.4p.