Miners back in FTSE favour

A strong finish to trading on Wall Street last night ensured the London market got off to a healthy start today.

Miners set the pace as the FTSE 100 Index stood 12 points higher at 4264.6 by mid-morning, although this represented a slowdown from the 50 point rally seen earlier in the session.

The Dow Jones Industrial Average closed more than 2% higher as US investors shrugged off disappointing labour market data and a poor session for European markets on Thursday.

Miners were back in favour after a difficult week, with Lonmin up 30p to 1217p and Xstrata 15.1p stronger at 684.3p.

British Airways shares have also suffered turbulence, but rallied 1.9p to 128.5p after it emerged yesterday that 7,000 staff had agreed to a voluntary pay cut, potentially saving the company £10m (€11.7m).

Other risers included retailer Marks & Spencer, which rose 5.5p to 308.5p ahead of a first quarter trading update from the company next week.

Meanwhile, shares in broadcaster BSkyB held firm despite further signs of the British communications regulator’s determination to force it to sell its sports and movies content to rivals at regulated prices.

BSkyB vowed to use all available legals channels to challenge Ofcom, which believes the broadcaster has “an incentive to restrict the distribution of premium channels”.

Shares in BSkyB were 1.5p lower at 450.25p.

On a quiet day for corporate news, shares in food producer Uniq rallied 9% after it agreed a deal to sell its operations in France. Uniq said the £62m (€72m) sale proceeds would be used to pay down debt and fund investment opportunities as it looks to focus on its UK turnaround.

Shares in the M&S supplier were 2.38p higher at 28p, while rival and Fox’s biscuit specialist Northern Foods lifted 3.25p to 55.75p.