Commodity and banking stocks push FTSE higher

The FTSE 100 gained 0.9% to 7,010 on higher commodity and oil prices, which boosted mining and resources stocks.

Randgold Resources (RRS), Polymetal (POLY) and Fresnillo (FRES) were the biggest risers, climbing at least 2.8%.

Barclays (BARC) and Royal Bank of Scotland (RBS) also pushed the blue chip index with gains of over 2%.

West Texas Intermediate (WTI) was 1% higher at $50.46 and Brent crude oil advanced 0.9% to $52 per barrel, respectively.

Gold gained 0.5% to $1,261 per ounce and copper rose 0.3% to $4,651 per tonne.


Bookmaker William Hill (WMH) ended talks over a possible £4.5bn tie-up with Amaya, owner of the world’s biggest poker website. Investors were happy the company planned to focus on online, technology, efficiencies and international as the stock rose 1.5% to 309.4p.


Fashion designer Burberry (BRBY) slumped 7.7% to £13.95 despite posting growth in revenue in the first half of its financial year. It benefited from the weak pound which is expected to benefit full year retail and wholesale profit, but investors fretted over fading growth.


Housebuilder Bellway (BWY) nudged higher to £22.75 after its pre-tax profit rose 41% in its financial year ended 31 July. Following the Brexit vote Bellway said it sold more homes at a higher price, and reservation levels surged beyond the previous year.


Budget airline Ryanair (RYA) cut its full-year forecasts which blamed the drop in the pound following the Brexit vote. It said net profit will be 5% lower at €1.3bn to €1.35bn, but this failed to deter investors, boosting its share price by 2.8%.

Online fashion firm ASOS (ASC) fell 7% to £49.60 on lower profit margins, despite revenue climbinh from £1,143m to £1,444.9m in the year to 31 August.

Mining firm Diamondcorp (DCP) launched a company-wide strategic review in response to its funding squeeze and possible interest in the company by third parties. Investors think this will trigger a complete buyout of the business, causing the share price to soar 52.4% to 3.12p.

Emerging hopes of a recovery in core oil and gas markets sees coatings specialist Hardide (HDD) gain 8.6%. Figures for the full year to 30 September are in line but the second half surge in demand was seen as evidence that its industry backcloth is improving.

Mining minnow Premier African Minerals’ (PREM) £0.3m cash call to buy into a new gold project failed to excite investors. The company said it is buying a 4.5% stake in Mauritius registered Casa Mining, which holds prospective gold mining and exploration licences in the Democratic Republic of Congo. Investors focused on a 36% discount needed to get funding triggering a stock price crash of 8.6% at 0.36p.

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