SM: FTSE ends session modestly higher as oil producers impress
StockMarketWire.com - END-OF-DAY REPORT: Headline shares ended a bumpy session modestly higher, with strong miners and oil producers offsetting mixed returns from the banks, with investors cautious ahead of speeches from Obama and Bernanke.
At the close of business, the FTSE100 was up 21.79 points at 5,340.38 with the FTSE250 ahead 43.72 points at 10,365.05 and the FTSE Smallcaps 3.24 points better at 2,959.82.
NEW YORK
US stocks overcame a slow start after disappointing jobless data as investors eagerly awaited speeches by Bernanke and Obama.
Approaching the close in London, the Dow Jones Industrial Average was up 29 points at 11,444, the S&P500 was flat at 1,199 and the Nasdaq Composite rose 8 points at 2,558.
LONDON MARKETS
London markets ended with firm gains after a cautious start. The Bank of England Monetary Policy Committee opted to keep UK interest rates at their historic low of 0.5% and maintain the QE level at £200bn.
Retailers were a focus as supermarket operator Morrisons produced solid half-year numbers and hiked its dividend 158%. Morrison shares rose 12.2p at 301.6p on the news. Peers gained in unison, with Tesco up 4.85p at 379.55p and Sainsbury 2.5p better at 296p.
Marks & Spencer added 8.1p at 321.9p as it continued to attract buyers on persistent bid rumours.
Elsewhere, Home Retail Group reported falling sales at its Argos and Homebase business, albeit less than expected; the shares gaining 2.3p at 117.8p in response and provoking an upgrade from sell to hold at Seymour Pierce. DIY rival Kingfisher edged down 0.1p at 236p in response.
In the financial sphere, fund manager Hargreaves Lansdown continued to attract support, jumping 17.3p at 503.5p, and hedge fund manager Man Group added 8.7p at 229.1p after a buy recommendation from Deutsche Bank, while private equity firm 3i Group edged ahead 1.1p at 204.4p after confirmation it moves to the FTSE250 after the next reshuffle on 16th September.
Most oil producers perked up as WTI crude prices edged over $90 a barrel, with Tullow Oil continuing to impress, up 56p at 1,227p after announcing a production sharing agreement in Tanzania. BP gained 2p at 388.5p, BG Group added 23p at 1,316.5p and Shell was up 8p at 2,085p.
Firming base metals prices helped the miners, with Vedanta Resources leading them higher, up 61p at 1,451p. Kazakhmys added 26p at 1,076p and Antofagasta rose 32p at 1,361p.
Randgold Resources climbed 260p at 7,040p and Fresnillo improved 90p at 2,147p as gold headed back towards $1,860 an ounce.
Other notable gainers included India's Essar Energy, up 6p at 260.1p, chip designer ARM Holdings, ahead 25.5p at 590p, and temporary power supplier Aggreko, 20p higher at 1,912p.
On the downside with blue chips, precious metals processor Johnson Matthey slumped 21p at 1,603p after Morgan Stanley downgraded it from equal-weight to underweight, the target price cut from 1,950p to 1,650p.
Coffee house to hotel group Whitbread lost 2.03p at 1,605p as profit-takers moved in, offsetting news that Credit Suisse has raised its target price on the stock to 1,818p from 1,764p.
Other leisure groups also had a tough day, with cruise ship operator Carnival down 5p at 1,974p and holiday firm TUI Travel 0.9p lower at 143p.
Banking issues suffered mixed fortunes, with Royal Bank of Scotland pick of the litter, up 0.28p at 22.74p, and Lloyds improving 0.17p at 32.9p, while Barclays eased 0.95p at 159p and HSBC fell 3.6p at 522p.
A Deutsche Bank downgrade from buy to sell sent fund manager Schroders tumbling, the shares closing down 31p at 1,446p.
Car insurance specialist Admiral sank 33p at 1,364p on news the OFT has called for evidence to establish the background to recent reports of rising UK private motor insurance premiums.
