SMW : FTSE maintains gains midday as resources stocks rebound
24 May 2011 | 12:43pm
StockMarketWire.com - MIDDAY REPORT: Headline shares maintained firm gains midday, as commodity prices rebounded, boosting miners and oil producers, offsetting a poor performance from banks on Eurozone woes and retailers on M&S caution.
At high noon, the FTSE100 was up 25.72 points at 5,861.61 with the FTSE250 ahead 62.6 points at 11,858.3 and the FTSE Smallcaps 12.25 points better at 3,235.28.
NEW YORK
US stock futures suggest a mildly higher start, although investors remain cautious on European debt concerns.
Dow Jones Industrial Average futures added 34 points at 12,396, S&P500 futures gained 4 points at 1,319 and Nasdaq 100 futures were up 5 points at 2,320.
LONDON MARKETS
Markets in London enjoyed a positive morning session as commodity prices rallied after yesterday's sell-off, although banking stocks remained fragile as Eurozone debt concerns widened to include Italy and Spain and retailers find few friends in these worrisome times.
Mining stocks led the charge this morning as metals price recovered, with Chilean copper miner Antofagasta leader of the pack, up 37.5p at 1,197.5p. Kazakhmys rose 30.5p at 1,237.5p and Anglo American improved 58p at 2,888.5p.
Risk aversion provoked a new bout of gold and silver buying, giving a boost to Randgold Resources and Fresnillo, up 70p at 4,790p and 38p at 1,340p, respectively.
WTI crude headed towards $99 a barrel as the US dollar drifted from highs, giving the major producers a boost. Shell rose 23p at 2,122p and BP gained 2.48p at 454.48p.
However, Cairn Energy took the accolade of blue chip leader, up 18.2p at 437.4p, after an enthusiastic appraisal of its Greenland drilling campaign.
Telecoms giant BT Group added 1.35p at 196.25p after an upgrade to buy from neutral at UBS, with the target price raised to 230p from 200p.
Well-received half-year numbers from midcap Pennon Group pushed the shares up 8.5p at 664.5p, giving Severn Trent a lift on the read across, the shares ahead 3.5p at 1,480.5p.
Amongst financial stocks there were some notable successes, although they were a minority, with interdealer broker ICAP enjoying a gain of 3.85p at 468.95p and insurer Resolution ahead 4.95p at 309.05p.
On the downside, airline groups remained under pressure on disruption concerns, in the face of the Icelandic volcanic ash cloud, with IAG easing 4.5p at 230.65p and no-frills rival easyJet down 0.4p at 344.85p.
In addition to the Eurozone blues, UK banks are also faced with a further review by Moody's, reflected in a poor morning performance. Barclays slipped 3.35p at 264.9p, Lloyds lost 0.61p at 50.26p and Royal Bank of Scotland dipped 0.16p at 40.72p.
Iconic high street retailer Marks & Spencer was the worst performer of the session, down 10.8p at 386.15p, when better-than-expected full-year numbers were accompanied by a cautious outlook. Tesco fell 2.7p at 412.15p in sympathy.
