FTSE climbs higher

The FTSE 100 Index climbed higher today as mining stocks benefited from a weakened dollar after a meeting of G20 finance chiefs failed to offer any specific measures to strengthen the greenback.

The meeting in Korea of 20 major advanced and emerging nations resolved to avoid weakening currencies to boost exports – a scenario that could cause a trade war – but stopped short of setting any measurable targets.

With the weak greenback making dollar-based mining stocks more attractive to investors, the FTSE 100 Index added 10.6 points to 5751. Antofagasta topped the risers board with a gain of 52p to 1321p, a rise of 4%, while Kazakhmys added 47p to 1380p and Xstrata lifted 34.5p to 1324p.

The pound is up against the still weakening dollar at 1.52 and reversed a recent downward trend against the euro, and was up at 1.125.

Other climbers on the Footsie included luxury fashion house Burberry, which added 38p to 1032p after broker Investec upgraded its share target price to 1100p from 950p, and speculation of a bid for the firm continues after sector peer LVMH’s bid for a 17% stake in luxury brand Hermes.

In a quiet session for corporate news, Pearson shares fell 3% despite the Penguin, Financial Times and school books publisher lifting its earnings guidance for the second time in three months. The stock fell 28.5p to 947.5p as Pearson cautioned that the fourth quarter was a crucial selling season for its education and consumer publishing divisions.

Lloyds Banking Group bucked the trend of rising shares and topped the fallers board after Credit Suisse cut its 12-month target price for the stock to 79p from 87p and warned falling property prices could have an impact. Shares dropped 5% ir 3.9p to 68p.

It said the market’s consensus forecast for 2011/12 revenues was 5% too high and said that a 10% fall in residential property prices over an 18 month period could increase impairment charges by up to £5bn (€5.6bn).

The update also knocked Royal Bank of Scotland, which slipped 0.8p to 45.4p.

Outside the top flight, shares in McBride, which makes supermarket own-label products such as laundry liquids, mouthwash and toothpaste, rose 2% after it announced a 1% rise in sales between July 1 to October 24, even though chief executive Chris Bull admitted big brands were fighting hard for sales.

He said the promotional spree was not necessarily bad news for McBride as consumers would become accustomed to paying low prices for brands and when the average price increased again they would buy even more supermarket own label goods, which would offer better value for money.

The biggest Footsie risers were Antofagasta up 52p at 1321p, Kazakhmys ahead 47p at 1380p, Burberry up 32p at 1026p and Wolseley ahead 52p at 1703p.

The biggest Footsie fallers were Lloyds down 3.9p at 68p, Pearson off 28.5p at 947.5p, Invensys down 8.8p at 311.6p and Standard Chartered off 32.5p at 1806p.