Miners rally on stronger commodity prices

Mining stocks rallied in response to higher commodity prices and Anglo American’s (AAL) positive third quarter update.

The FTSE 100 climbed 0.5% to 7,019.

Anglo American (AAL) and Antofagasta (ANTO) were the biggest blue chip risers with gains of over 2.9%, while Rio Tinto (RIO) and Glencore (GLEN) traded over 2.5% higher.

Randgold Resources (RRS) and BHP Billiton (BLT) were also in positive territory.

West Texas Intermediate (WTI) crude oil advanced 0.6% to $50.85 and Brent crude oil was 0.4% higher at $51.67 per barrel, respectively.

Gold glittered at $1,265 per ounce and copper jumped 1.3% to $4,673 per tonne.

FTSE 100 RISERS AND FALLERS

Anglo American reported a 4% increase in diamond production to 6.3m carats in the third quarter to 30 September compared to the same period in 2015 when production was reduced due to trading conditions. The miner traded 3.4% higher at £11.

Shares in wealth manager St James’s Place (STJ) nudged higher after reporting a third quarter assets rise of 8.9% due to market gains and robust demand for its advice in the wake of the Brexit vote.

Costa Coffee owner Whitbread (WTB) slumped 3.5% to £37.08 despite first half profit rising slightly ahead of expectations and a 5% hike in the dividend. Investors may be cautious on a reference to ‘uncertainty in the UK economic outlook’.

Aerospace engineer GKN (GKN) was in negative territory following downbeat guidance in a third quarter update. ‘In line with the global outlook, we see growth rates easing in our major markets, said chief executive Nigel Stein.

FTSE 250 RISERS AND FALLERS

Coach operator National Express (NEX) accelerated 4% as operating profit climbed 9% in the third quarter with a strong contribution from its overseas businesses.

Shares in life insurer Phoenix (PHNX) fell 11.3% to 758p following a £735m rights issue to fund the acquisition of Abbey Life, which traded ex-rights.

SMALL CAP RISERS AND FALLERS

Investors checked into specialist travel agent On The Beach (OTB) after the company said underlying pre-tax profit will be slightly ahead of the top end of market expectations in the year to 30 September.

Carpets, beds and rugs retailer Carpetright’s (CPR) declined 2.4% to 191p on a half year trading statement, which revealed a 2.9% dip in UK like-for-like sales. Trading in the core UK market was hampered by variable consumer sentiment and a ramp up in competition from new entrants including Martin Harris’ Tapi chain.

Budget footwear chain Shoe Zone (SHOE) put its best foot forwards as a positive year end trading update triggered a stock rise of 17.3% to 167.22p. It traded well in the second half of the year, seeing little impact from the EU referendum, and said it expects to report annual pre-tax profit ‘marginally ahead’ compared to the prior year.

Pharmaceutical products manufacturer Beximo (BXP) got a welcome shot in the arm after receiving US Food and Drug Administration approval for Sotalol Hydrochloride, a generic version of the cardiovascular drug Betapace.

Oil and gas exploration firm Pantheon Resources (PANR) said its operator drilled the VOBM#3 onshore east Texas to a depth of 14,500ft and will pursue a vertical completion. Data suggested a potentially significant reservoir in the primary target the Eagle Ford/Woodbine sandstone.

Story provided by StockMarketWire.com