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

FTSE rises slightly thanks to mining stocks

Published 21/12/2018, 17:29
© Reuters. Traders work at their desks whilst screens show market data at CMC Markets in London
UK100
-
HSBA
-
VOD
-
RIO
-
AAL
-
BHPB
-
ANTO
-
IRV
-
HG
-
NKE
-
FTMC
-
FTNMX551030
-
RPC
-
APO
-
IDSI
-
JE
-
TKWY
-
DHER
-

By Muvija M and Shashwat Awasthi

(Reuters) - UK blue-chip stocks rose slightly on Friday, recouping the session's losses as mining stocks gave investors something to cheer about at the end of a largely dismal week that was underpinned by global economic growth concerns.

The FTSE 100 (FTSE) gained 0.1 percent, while the FTSE 250 (FTMC) was roughly unchanged as the market wrapped up its final full week of trading in 2018.

Wall Street lifted the mood, rising in volatile trade on Friday after heavy losses on the chances of a partial U.S. government shutdown and of further interest rate increases by the Federal Reserve.

That guided a 0.6 percent gain in HSBC (L:HSBA), which has a larger international presence, making it the top boost to the FTSE 100.

The blue chip index outperformed its European peers due to its exposure to the mining sector (FTNMX1770). Anglo American (L:AAL) climbed 2.8 percent, while Rio Tinto (L:RIO), BHP (L:BHPB) and Antofagasta (L:ANTO) rose 1.4-1.6 percent on higher copper prices.

UK indices were still on track for their worst quarter since 2011, when Europe was battling a sovereign debt crisis, and their worst year since 2008 amid growing worries about slower global growth, Brexit and rising U.S. borrowing costs.

Vodafone (L:VOD) dropped 2 percent and was among the biggest drags on the main index after a tender offer to replace PwC as its auditor.

However, investors developed an appetite for Just Eat (L:JE) as it rose 3 percent after rival Takeaway.com (AS:TKWY) struck a 930-million-euro ($1.07 billion) deal to buy larger rival Delivery Hero's (DE:DHER) activities in Germany.

The British takeaway group was urged to sell assets by a shareholder earlier this week, and analysts have since said that the calls raised the possibility of a takeover or go-private deal.

Royal Mail (L:RMG) shares gained 1.5 percent before the firm leaves the blue-chip index as part of the reweightings on Dec. 24.

Nike's better-than-expected results provided temporary respite to the battered retail sector, with JD Sports jumping over 7 percent to be among the top mid-cap gainers.

" Nike (NYSE:NKE) results are a little ray of sunshine in the market," said Paul Mumford, a fund manager at Cavendish Asset Management.

Still, surveys showed that British consumers are at their gloomiest in more than five years with business sentiment at its weakest since the 2016 vote to leave the European Union.

"I think the main sentiment is going to come after the New Year when we start having retailers' trading statements coming through," said Mumford.

Elsewhere on the midcaps, RPC Group Plc (L:RPC), Europe's largest plastics packaging firm, erased earlier gains and closed the day with a 0.7 percent dip after it extended the deadline again for Apollo Global Management (N:APO) to make a firm offer to buy the company or walk away.

The deadline has been extended four times and Bain Capital earlier pulled out of the race without giving a reason.

"If I was an RPC shareholder, I would be anticipating the magic of Christmas more positively but as always with magic, there can/might be an element of illusion," said Peel Hunt analysts.

In small-caps, Interserve (LON:IRV) rose 3.3 percent after the support services group announced a rescue plan involving a debt-for-equity swap in an attempt to avoid a Carillion-style collapse.

© Reuters. Traders work at their desks whilst screens show market data at CMC Markets in London

The shares, which had rallied as much as 12 percent at the open, have still lost 88 percent year to date, reflecting the problems of the sector.

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.