Miners boosts FTSE as commodity prices rise

The blue chip index continued to gain positive momentum following in-line UK employment data and higher mining stocks, which was supported by rising commodity prices.

Unemployment was 4.9% in July, flat on the prior month, according to the Office for National Statistics.

The FTSE 100 advanced 0.7% to 6,712 led with Anglo American (AAL), Glencore (GLEN), Antofagasta (ANTO), Fresnillo (FRES) and Randgold Resources (RRS) trading up to 3.6% higher.

Burberry (BRBY) dipped 0.8% after luxury brands Richemont and Hermes posted downbeat trading statements in Europe.

West Texas Intermediate (WTI) crude oil rose 0.7% to $45.21 and Brent crude oil was up 0.6% to $47.37 per barrel, respectively.

Gold was flat at $1,319 per ounce and copper remained at $4,651 per tonne.

Online supermarket Ocado (OCDO) fell 7.8% to 256.3p as yesterday’s warning of sustained margin pressure in the sector continued to hit investor confidence.


Housebuilder Galliford Try (GFRD) was on solid ground after posting a 15% increase in pre-tax profit of £135 million for the year to the end of June, despite uncertainty following the Brexit vote. The company traded 5.6% higher at £11.94.


Investors dug Northern Ireland-based Dalradian Resources (DALR) after they found more gold than expected from test work at its Curraghinalt project.

Premier African Minerals (PREM) said it may spin off its Zulu lithium prospect to be a separately-listed entity. It appointed David Lenigas to review the project, while its shares jumped 33.3% to 0.5p.

UK’s largest gym operator, Pure Gym announced it will float on the London Stock Exchange and plans to raise £190 million to pay down debt.

Stratmin Global Resources (STGR) soared 23.1% to 2p following the completion of the divestment of Graphmada Mauritius to Bass Metals.

The chief executive and chief operating officers of petrol forecourt retailer Applegreen (APGN) announced they plan to sell up to £23 million worth of shares, which is 7.5% of the firm. It is claimed they are selling in response to institutional investor demand for stock.

Plant Health Care (PHC) wilted 25.4% to 20.5p after more than doubling its H1 pre-tax loss to $6.6m, which it blamed on challenging trading conditions.

Construction services provider Driver (DRV) said it expects to return to profit during the second half of 2016. However, operating profits in the AMEA region were behind expectations, causing the board to increase the provision against outstanding debts in the AMEA region by a further £520,000. Shares in the firm slumped 10.5% to 42.5p.

MyCelx Technologies (MYX) swung from a loss into the black with a half-year pre-tax profit of $1.4m, as a result of cost control measures, triggering a rise of 20.7%.

Clear Leisure (CLP) raised £200,000 through a placing of more than 22 million shares at a discounted price of 0.9p per share to accelerate the buyback of certain subsidiaries bank debts to improve its balance sheet.

Investors responded warmly to Parkmead’s (PMG) decision to increase its stake in the Perth and Dolphin oil fields in the UK Central North Sea.

Modern Water (MWG) fell 16% to 5.25p after its revenues declined by nearly a third to £1.14 million during its reorganisation of the company to cut costs.

Quixant (QXT) was in positive territory after significantly increasing its revenue to $41.3 million and boosting its pre-tax profit in the first half of the year due to the successful gaming division.

Cambian (CMBN) was up 10.7% despite posting a pre-tax loss of £3.5m for the six months to the end of June, down from a profit of £10 million, as revenues rose to £160 million.

Story provided by StockMarketWire.com