FTSE sets new 14-month high

The FTSE 100 Index set a new 14-month high today after mining stocks improved by as much as 8% in morning trading.

The weaker dollar and an upbeat assessment of future platinum values from miner Lonmin meant stocks from the sector occupied the leading five places on the blue-chip risers board.

The FTSE 100 Index, which closed at a new high for the year on Friday night, climbed another 62.1 points to 5358.5 by mid-morning.

Asian markets were up by more than 1% overnight as the weak dollar prompted investors to pour more money into commodities.

Lonmin led the way with a rise of 125p to 1717p, while Xstrata added 53p to 1067p and Rio Tinto lifted 152p to 3285p.

Rolls-Royce joined the risers board after it announced Trent engine orders worth $2bn (€1.33bn) with Air China and Ethiopian Airlines.

Shares were 15.1p higher at 485p, a gain of 3%.

The upbeat mood was also seen in the FTSE 250 Index after housebuilder Persimmon said sales trends continued to improve over the autumn, with the average selling price of homes reserved since the start of July 6% higher at £173,000 )€193,000).

The company’s shares added 13.1p to 473.2p, with Barratt Developments ahead 5.9p at 146.1p and Bellway 52p higher at 832p.

Price comparison website Moneysupermarket set the pace in the FTSE 250 after it reported a 15% improvement in quarter-on-quarter revenues, although the figure was still down on a year earlier. Shares were more than 5% higher, up 3.45p at 83.45p.

Back in the top flight, shares in Sainsbury’s were down 2.8p to 339.9p after the Times newspaper quoted industry figures showing £11m (€12.3m) of spending switched to the supermarket’s main competitors in the past 12 weeks.