Mining stocks boost FTSE

A recovery for mining stocks ensured the London market enjoyed a turnaround in fortunes during morning trading today.

Prospects had looked bleak after the FTSE 100 Index opened as much as 45 points lower, with investors still fretting over Thursday’s 2% fall for the Dow Jones Industrial Average and fears of a recession in the US economy.

Hopes of a more positive session in New York meant the Footsie later stood 77.8 points higher at 5980.2.

Rio Tinto led the rally with a gain of 264p to 4743p, while Xstrata lifted 159p to 3256p.

London Stock Exchange joined the mining pair at the top of the risers board, with shares up 74p to 1661p after the LSE opened an office in Beijing.

Marks & Spencer was also higher, by 19.75p to 419p, after traders reacted to market whispers of stake building. BHS boss Sir Philip Green was quick to rubbish speculation that he was involved in the buying spree.

The rest of the retail sector was higher, even though official figures showed worse-than-expected volumes in December.

Analysts said there was an element of relief that Christmas was not a total wash-out, causing shares in B&Q owner Kingfisher to rise 4.6p to 129.1p and Argos firm Home Retail Group to lift 8.75p to 275p.

Mobile phone and broadband firm Carphone Warehouse suffered jitters earlier in the session, even though it told investors that it remained on course to meet market expectations. Shares later recovered to stand 9.75p higher at 314.5p.

Financial stocks were also affected by the current uncertainty, but Halifax Bank of Scotland later stood 8p higher at 641p.

Elsewhere, British Energy shares recovered from a weak start to stand 9.5p higher at 529.5p. It said today that two of its power stations would remain shut until the second half of 2008.