Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

Miners drive FTSE higher, Weir Group and Carillion lead mid-caps

Published 17/07/2017, 10:02
© Reuters. FILE PHOTO: A worker shelters from the rain as he passes the London Stock Exchange in London
UK100
-
EZJ
-
BALF
-
AAL
-
PSON
-
TLW
-
ANTO
-
WEIR
-
HTG
-
ITV
-
CLLN
-
FTMC
-
GLEN
-

By Helen Reid

LONDON (Reuters) - Britain's major share index started the week with solid gains driven by basic resource firms, while a government contract win by crisis-hit construction firm Carillion gave it some respite from heavy losses sustained last week.

Miners pushed the FTSE 100 (FTSE) up 0.4 percent, while mid-caps outperformed, rising 0.6 percent with Weir Group (L:WEIR) and Carillion (L:CLLN) shining.

ITV (L:ITV) was the top blue-chip gainer, up 2.6 percent after the broadcaster said it had appointed Carolyn McCall, boss of airline EasyJet (L:EZJ) as its next chief executive. [nFWN1K805Q]

"For ITV, we think the move suggests the company is comfortable with its strategic direction but her strong personal links should be helpful in several areas," said Liberum analysts.

Anglo American (LON:AAL)

Leading the mid-caps (FTMC) was troubled construction and support services firm Carillion (L:CLLN), whose shares gained as much as 13 percent after its joint venture with Eiffage and Kier was awarded two contracts worth 1.4 billion pounds for high speed rail project HS2. [nL3N1K82U8]

Carillion shares had lost 70 percent of their market value last week.

"This ought to help its share price but whether it can deliver these contracts is another matter," said Neil Wilson of ETX Capital. "It could make it a slightly more attractive prospect to rescue if it comes to that."

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Balfour Beatty (L:BALF) also won two HS2 contracts among the $8.6 billion worth of contracts awarded by the government, sending its shares up 2.8 percent. [nL8N1K80XK]

Weir Group (L:WEIR) led European gainers, up 9.2 percent and hitting its highest level since May, after the firm said it expected its oil and gas unit performance to beat analysts' expectations due to strong drilling activity in North America. [nL3N1K82Q5]

Oil services group Hunting (L:HTG) also gained 3.4 percent, while Tullow Oil (L:TLW) rose 3.5 percent.

Pearson (L:PSON), meanwhile, fell to the bottom of the FTSE, down 1.3 percent after Berenberg trimmed its target price on the stock after the company partially sold its stake in Penguin Random House. [nL8N1K8181]

In a note titled "robbing Peter to pay Paul", Berenberg analysts said: "Unlike Pearson's prior disposals of the FT and The Economist, there was no upside value surprise, reflecting the fact that there was only one bidder, and one with a constrained balance sheet."

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.