London close: Footsie posts strong recovery
London enjoyed a much brighter day as miners and pub companies helped propel the Footsie to a 3% gain on the day.
This was despite the fact that the Bank of England, unlike many of its national counterparts, hasn't provided any extra liquidity for the market. The rises were pretty much across the board with only a handful of Footsie share prices heading the other way. In fact, there were only nine fallers in the index.
UK producer price data showed British companies' costs unexpectedly fell in July, while factory gate prices rose. That suggests that price pressures may be easing. However, UK house prices rose 12.1% year-on-year in June compared with a revised 10.8% jump in May.
Miners were the best performers with Kazakhmys leading the risers after UBS upgraded its view to 'buy' from 'neutral' and gave a price target of 1,450p. Antofagasta, Anglo American, BHP, Rio and Xstrata were also higher.
Chemicals firm ICI gained after it agreed a 670p per share offer from Dutch rival Akzo Nobel.
Pub operators are amongst the major risers, with Punch Taverns and Enterprise Inns ahead.
Life insurer Prudential rose after it said it is upping its stake in its Chinese joint venture CITIC Prudential Fund Management to 49% from 33%.
Only a handful of fallers today, with supermarket chain J Sainsbury down on reports that the takeover from Delta Two could be hindered by the recent credit concerns.
Broker HSBC reiterates overweight rating on British Land with a 2000p price target, ahead of its first quarter results expected on Wednesday. The broker also says overweight on Land Securities, with a price target of 1525p
Credit Suisse held its 'buy' rating and 1,150 target on plumber Wolseley, saying that it is too early to expect a re-rating of the stock.
Amongst the mid-caps, FKI posted stellar gains as Merrill Lynch upgraded the engineering firm.
Construction firm Keller Group posted strong gains, retracing the heavy losses it posted last week on fears that the credit crunch would hit economic growth and therefore reduce construction demand.
Precious metals producer Hochschild Mining said it has entered into a third country after beginning production at the Moris mine in Mexico.
Property investment firm Warner Estate said first quarter trading to June 2007 is in line with budget as it increased weighting in the London property market.
Dawnay, Day Sirius has agreed to acquire five German business parks for a combined total of €102.9m. The acquisitions provide an average net initial yield of 7.66%.
Consultancy group Management Consulting Group said first half trading results are ahead of expectations as it resumed the payment of an interim dividend.
Daniel Stewart swung into full-year losses following the effect of the ban of internet gambling in the US but said it looks to the future with optimism.
Timestrip, which makes disposable labels that monitor lapsed time, warned full-year revenues will be below expectations but said results will still be above those of 2006.
FTSE 100 - Risers
Antofagasta (ANTO) 685.00p +10.48%
Kazakhmys (KAZ) 1,195.00p +10.44%
Anglo American (AAL) 2,816.00p +8.31%
Home Retail Group (HOME) 405.25p +7.56%
Daily Mail and General Trust (DMGT) 687.50p +7.25%
Rio Tinto (RIO) 3,220.00p +7.05%
Punch Taverns (PUB) 1,067.00p +6.97%
BHP Billiton (BLT) 1,348.00p +6.90%
Man Group (EMG) 512.00p +6.83%
Enterprise Inns (ETI) 609.50p +6.46%
FTSE 100 - Fallers
Kingfisher (KGF) 211.50p -1.63%
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Standard Life (SL.) 311.50p -1.19%
Johnson Matthey (JMAT) 1,690.00p -0.82%
Hammerson (HMSO) 1,246.00p -0.72%
Reckitt Benckiser (RB.) 2,741.00p -0.51%
ITV (ITV) 105.10p -0.47%
Sainsbury (J) (SBRY) 547.00p -0.36%
British Sky Broadcasting Group (BSY) 671.50p -0.30%
Capita Group (CPI) 733.50p -0.20%
FTSE 250 - Risers
Keller Group (KLR) 940.00p +16.77%
Rathbone Brothers (RAT) 1,305.00p +12.79%
ITE Group (ITE) 170.00p +12.77%
Britvic (BVIC) 320.25p +12.37%
Savills (SVS) 489.25p +12.21%
DS Smith (SMDS) 240.50p +11.99%
Halfords Group (HFD) 382.00p +11.45%
Kier Group (KIE) 1,999.00p +11.06%
FKI (FKI) 98.75p +10.96%
Hiscox (HSX) 278.00p +10.76%
FTSE 250 - Fallers
Avis Europe (AVE) 45.00p -11.76%
COLT Telecom Group S.A. (COLT) 146.00p -8.75%
Minerva (MNR) 277.25p -7.74%
Admiral Group (ADM) 874.00p -7.71%
Forth Ports (FPT) 1,820.00p -6.43%
Grainger (GRI) 532.50p -5.33%
Shaftesbury (SHB) 567.50p -5.18%
Jardine Lloyd Thompson Group (JLT) 384.75p -5.00%
Tullow Oil (TLW) 482.25p -4.79%
Randgold Resources (RRS) 1,168.00p -3.87%
