Miners and banks push Britain's FTSE towards record highs
Reuters
Published Apr 24, 2015 17:09
Miners and banks push Britain's FTSE towards record highs
By Atul Prakash
LONDON (Reuters) - Britain's top share index edged close to a record peak on Friday, with heavyweight HSBC (LONDON:HSBA) gaining after saying it was considering moving its headquarters and miners tracking a strong rally in industrial metals prices.
The UK mining index rose 1.6 percent, the top sectoral gainer, as copper rose 1.7 percent on lower inventories and a weaker dollar.
Aluminium, nickel and zinc also gained 1.0 to 2.5 percent, helping shares in BHP Billiton (LONDON:BLT), Anglo American (LONDON:AAL) and Glencore (LONDON:GLEN) to rise 1.9 to 2.6 percent.
HSBC was up 2.9 percent after saying its board had asked management to look at the best place to be based in light of new UK regulations, citing in particular the requirement to ringfence retail operations.
"Any such move could lessen their (HSBC's) burden in terms of levies and additional taxes that have been applied to the UK banks," said Keith Bowman, equity analyst at Hargreaves Lansdown (LONDON:HRGV).
"We have also got some uncertainty of what the new UK government could bring."
With Britain's May 7 election now less than two weeks away, Prime Minister David Cameron's centre-right Conservatives and the centre-left Labour party are neck and neck in opinion polls, indicating that no single party will win a clear majority.
The FTSE 100 index closed 0.2 percent higher at 7,070.70 points, not far from a record high of 7,119.35 points set earlier this month. The broader market was supported by a 1.8 percent rise in the UK banking index on the back of gains recorded by HSBC.
The market was also helped by some other movers, with BAE Systems (LONDON:BAES) up 2.3 percent after Europe's biggest defence contractor said it had started an assessment of its U.S.-based manpower and services businesses in its Intelligence and Security divisions. It said they had generated a number of enquiries and external interest.
On the downside, AstraZeneca fell 1.7 percent after reporting a 6 percent drop in first-quarter sales, hit by the launch of generic copies of its popular stomach acid pill Nexium in the vital U.S. market and by the strong dollar.
Mid-cap Acacia Mining Plc rose 4.2 percent as analysts at Credit Suisse (SIX:CSGN) gave the stock an "outperform" rating even after the company reported an 18 percent fall in its first-quarter core profit.
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"New management's improving track record and strong focus on mine development give us confidence on project delivery," Credit Suisse analysts said in a note. "We see scope for self-help to drive a re-rating (35 percent upside potential) on a six to 12-month view."
Written By: Reuters
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