🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

FTSE heads for first weekly gain of 2016

Published 22/01/2016, 10:09
© Reuters. A man shelters under an umbrella as he walks past the London Stock Exchange
UK100
-
BARC
-
SHEL
-
BG
-
BHPB
-
PSON
-
ANTO
-
FTNMX551030
-
FTNMX601010
-

By Atul Prakash

LONDON (Reuters) - Britain's top share index extended the previous session's rally on Friday, with a jump in commodities-related stocks on the back of stronger oil and metals prices boosting the overall market.

The FTSE 100 (FTSE) jumped 1.8 percent to 5,879.57 points by 0937 GMT, building on Thursday's similar gains and moving away from this week's "bear market" territory, a technical term to define a slump of 20 percent from an index's previous peak.

The blue-chip index, up 1.3 percent so far this week, headed for its first positive weekly close this year.

The UK Oil and Gas index (FTNMX0530) surged more than 4 percent after oil prices rose 5 percent to scale the $30 mark breached last week, with cold U.S. and European weather as well as firmer financial markets giving traders reason to cash in on record short positions.

The UK mining index (FTNMX1770) was up 3 percent, supported by a rise in prices of key industrial metals.

"In the short term, the FTSE's commodities-led rally has legs and we cannot rule out a move towards 6,000 in the coming sessions," Jawaid Afsar, senior trader at Securequity, said.

"However, its medium-longer-term remain uncertain as some serious damage has been done to its technical outlook. The FTSE is still flirting around its 'bear market' territory and a fall below 5,800 could lead to a slump towards the 5,200-5,300 area."

Commodities-related stocks featured among the top gainers in the FTSE 100 index. Shares in Antofagasta (L:ANTO), BHP Billiton (L:BLT), Royal Dutch Shell (L:RDSa) and BG Group (L:BG) rose 3.9 to 7.8 percent.

© Reuters. A man shelters under an umbrella as he walks past the London Stock Exchange

Pearson (L:PSON), former owner of the Financial Times, was the only negative stock in the FTSE. Pearson fell 2.3 percent after a series of target price cuts by companies including JP Morgan, Bernstein, Natixis and Barclays (L:BARC).

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.