U.K. stocks climbed for a third day, trimming the FTSE 100 Index’s worst annual decline on record, as commodity producers rallied. BHP Billiton Ltd., the world’s largest mining company, climbed 1.3 percent on speculation gold will continue to rise. Rio Tinto Group added 2.9 percent after saying it sold its stake in an aluminum smelter in China to a partner to help reduce debt. Vodafone Group Plc increased 2.1 percent after Credit Suisse Group AG issued a “trading buy” on the world’s largest mobile phone company. The benchmark FTSE 100 Index rose 41.49, or 0.9 percent, to 4,434.17. The FTSE All-share Index gained 0.7 percent. Ireland’s ISEQ Index dropped 0.3 percent. “We are a little bit more optimistic,” said James Hughes, a London-based market analyst at CMC Markets. “Gold and metal prices are helping the FTSE, if that continues it will lead us into more gains next week.” The FTSE 100 tumbled 31 percent this year, led by banks and basic resources companies, as credit-related losses and writedowns at financial firms that topped $1 trillion pushed the U.S., Europe and Japan into the first simultaneous recessions since World War II. HBOS Plc, the bank that agreed to a takeover by Lloyds TSB Group Plc, lost 90 percent of its value this year as credit markets froze. Royal Bank of Scotland Group Plc was the second-worst performer on the FTSE 100 in 2008, slumping 87 percent. The U.K. government took control of the bank as part of the global bailout of financial institutions. BHP Billiton Gains BHP increased 1.3 percent to 1,294 pence today, trimming this year’s loss to 16 percent. Gold may continue to rise in 2009 on speculation geopolitical tensions and a weaker dollar will boost demand for the metal as a haven. Rio Tinto gained 2.9 percent to 1,490 pence. Qingtongxia Aluminium Co. will buy the world’s third- largest mining company’s 50 percent stake in the venture, Jim Singer, a Brisbane, Australia-based spokesman for London-based Rio Tinto, said without revealing the sale price. The stock fell 72 percent in 2008. Randgold Resources Ltd. retreated 1.5 percent to 2,948 pence. The owner of two gold mines in Mali was the best performer in the FTSE 100 this year, having climbed 60 percent. Vodafone increased 2.1 percent to 139 pence. The world’s largest mobile-phone company was given a “trading buy” at Credit Suisse, with the broker saying the decline in the value of the U.K. pound leaves “guidance and consensus beatable.” The following stocks also rose or fell in the U.K. market today. Stock symbols are in parentheses. Aberdeen Asset Management Plc (ADN LN) soared 15 percent to 119.5 pence. Scotland’s largest independent money manager agreed to buy fund assets from Credit Suisse for about 250 million pounds ($361 million). Fresnillo Plc (FRES LN) climbed 4.6 percent to 230 pence. The world’s largest silver producer will buy back shares between Jan. 2 and Feb. 23 and appointed JPMorgan Cazenove Ltd. to manage the purchase of its stock. Imperial Energy Plc (IEC LN) jumped 3.5 percent to 1,247 pence. Shareholders owning more than 90 percent of the stock of Imperial Energy backed a 1.4 billion-pound bid from India’s Oil & Natural Gas Corp. Oilexco Inc. (OIL LN) sank 60 percent to 20 pence. The North Sea producer of oil and gas said its U.K. subsidiary was likely to file for insolvency administration as early as next week.

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