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Mining industry

U.K. Stocks Rise for First Time in Four Days, Led by Mining Companies

Strategic Insights

— 2 min read

U.K. stocks rose on Thursday, led by a rebound in mining companies after Xstrata Plc reported earnings that beat analyst estimates and base metals prices climbed in London. The FTSE 100 Index increased 46.79, or 0.9 percent, to 5,107.71 at 8:33 a.m. in London, while the FTSE All-Share Index gained 0.9 percent. The rebound was also driven by a decline in the U.S. unemployment rate and G-7 vows to keep economic stimulus measures, which improved investor confidence about the global economic recovery.

Key Takeaways:

  • Xstrata Plc led the rebound in mining shares, climbing 3.7 percent to 985.3 pence, after reporting better-than-expected earnings. Full-year operating earnings before interest, tax, depreciation, and amortization (Ebitda) fell 27 percent to $7.05 billion, beating the $6.67 billion median of 19 analyst estimates compiled by Bloomberg.
  • Randgold Resources Ltd. gained 5.8 percent to 4,451 pence after the developer of mines in west and central Africa reported a tripling of fourth-quarter profit to $32.08 million on surging gold prices.
  • International Power Plc rose more than 5 percent on reports GDF Suez SA may revise an offer for the British utility, with a new deal potentially including cash for shareholders.
  • The FTSE 350 Mining Index climbed 2.8 percent, advancing for the first time in four days, as copper rebounded from a three-month low in London.
  • Aer Lingus Group Plc added 3.8 percent to 68 cents in Dublin after reporting a 0.6 percent rise in passenger numbers from a year earlier to 665,000 in January.
  • ICAP Plc gained 2.3 percent to 300.8 pence, recovering some of last week's 21 percent decline, after Credit Suisse Group AG upgraded the shares to outperform from neutral, citing the company's attractive valuation.

Statistics:

  • The FTSE 100 Index increased 46.79, or 0.9 percent, to 5,107.71 at 8:33 a.m. in London.
  • The FTSE All-Share Index gained 0.9 percent.
  • Xstrata Plc climbed 3.7 percent to 985.3 pence.
  • Randgold Resources Ltd. gained 5.8 percent to 4,451 pence.
  • International Power Plc rose 5.7 percent to 331.7 pence.
  • Aer Lingus Group Plc added 3.8 percent to 68 cents in Dublin.
  • ICAP Plc gained 2.3 percent to 300.8 pence.

Sources:

  • Bloomberg
  • Euclid Infotech Pvt. Ltd.
  • The Independent
  • Credit Suisse Group AG
  • ICAP Plc
  • Xstrata Plc
  • Randgold Resources Ltd.
  • International Power Plc
  • Aer Lingus Group Plc

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