The FTSE 100 was on track to extend its winning streak to four sessions as London’s miners and oil stocks, which make up a significant chunk of the blue-chip index, were hot commodities.
The index notched up another 17.26 points, or 0.2 per cent, to reach a near nine-month high of 7,650.57 and is on course to put on more than 1.8 per cent this week if gains hold. The more UK-focused FTSE 250, down for the first day in three, edged 48.51 points, or 0.3 per cent, lower to 19,414.95.
Metal and crude prices were supported by hopes of a demand boost from China as well as positive data showing lower US fuel inventories following a huge winter storm at the end of last year. That pushed Anglo American up by 77p, or 2.3 per cent, to £33.96; Endeavour Mining by 50p, or 2.7 per cent, to £18.84; Rio Tinto by 113p, or 1.9 per cent, to £60.53; and BP by 5¾p, or 1.2 per cent, to 477½p. Shell ticked up 34p, or 1.5 per cent, to £23.44½ after the oil major provided a positive fourth-quarter trading update.
Rentokil Initial lingered at the bottom of the leaderboard, down 26p, or 5 per cent, to 494¼p after Exane BNP Paribas issued an “underperform” rating, as it started coverage of the pest control company, because of “too high” consensus expectations. Diageo also fell victim of a broker, this time from Morgan Stanley, which caused the shares to drop 72p, or 2 per cent, to £35.80.
Essentra was the biggest faller in the mid-caps as the components supplier posted a 3 per cent fall in fourth-quarter revenues. Analysts at Jefferies said the “tricky trading period was expected” and will likely continue into the next financial year. Essentra’s shares, on track to settle at a two-month low, dropped 17½p, or 7.5 per cent, to 216½p.
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A trading update from the shipbroker Clarkson, however, went down much better with investors as the shares rose 115p, or 3.7 per cent, to £32.60.