London close: Stocks rise as UK construction PMI beats forecasts

London stocks edged higher after a better-than-anticipated UK construction survey offset weak US data and a decline in oil prices.

UK construction activity growth held steady in March, a survey by Markit/CIPS revealed. The purchasing managers’ index remained at 54.2, above the 50 level that separates an expansion from a contraction for the 35th consecutive month. Analysts had expected a reading of 54.1.

“It should also be borne in mind that while the March purchasing managers’ survey still points to clear growth, hard data from the Office for National Statistics have generally been weaker (although concerns remain over the calculation and accuracy of the hard data),” said Howard Archer, chief UK and European economist at IHS Global Insight.

“Latest hard data show that construction output disappointingly dipped 0.2% month-on-month and 0.8% in January, marking a soft start to 2016. “

Meanwhile, oil prices were volatile after Iranian oil minister Bijan Zanganeh told Iran's Mehr News agency over the weekend that the country would continue increasing its production and exports. His remarks came after Saudi Arabia on Friday said it would not agree to a production freeze until all other major producers did the same.

At 1630 BST Brent crude fell 0.91% to $38.32 per barrel while West Texas Intermediate dropped 0.91% to $38.32 per barrel.

In the Eurozone, the seasonally-adjusted unemployment rate dropped to 10.3% in February from 10.4% in January, as expected by analysts. January’s rate was revised up from a previous estimate of 10.3%.

In the US, the Commerce Department said new orders for factory goods fell 1.7% in February as demand fell broadly. While better than the 1.8% drop expected by analysts, it marked a stark contrast to the 1.6% increase registered in January.

On the corporate front, Anglo American gained after saying it has entered into a sale and purchase agreement to offload its 70% interest in the Foxleigh metallurgical coal mine in Queensland, Australia.

Payments processing giant Worldpay was a high riser as investors regained interest following a tough March. Mike van Dulken, head of research at Accendo Markets, said the fundamentals for the company are “pretty solid as we move toward a cashless society”.

Mondi slumped after the packaging and paper group said Russian authorities are investigating its Mondi Syktyvkar business on claims it violated anti-monopoly laws in regards to pricing of offset paper.

Ocado advanced on the back of reports that the company could be on the verge of agreeing a technology deal with an international retailer, according to the Daily Telegraph.

Pets at Home Group shares were in the dog house after news that the company had delayed the joining date of Graeme Jenkins as group chief financial officer.

Market Movers

FTSE 100 (UKX) 6,162.72 0.27%
FTSE 250 (MCX) 16,835.74 -0.05%
techMARK (TASX) 3,130.05 0.16%

FTSE 100 - Risers

Mediclinic International (MDC) 925.50p 3.06%
Shire Plc (SHP) 4,200.00p 2.89%
Anglo American (AAL) 547.90p 1.76%
Rio Tinto (RIO) 1,974.50p 1.62%
WPP (WPP) 1,651.00p 1.48%
Pearson (PSON) 861.00p 1.47%
DCC (DCC) 6,220.00p 1.47%
Associated British Foods (ABF) 3,393.00p 1.47%
United Utilities Group (UU.) 912.50p 1.28%
Worldpay Group (WI) (WPG) 278.00p 1.05%

FTSE 100 - Fallers

TUI AG Reg Shs (DI) (TUI) 1,051.00p -2.78%
Next (NXT) 5,295.00p -2.75%
Mondi (MNDI) 1,314.00p -2.52%
Fresnillo (FRES) 905.00p -2.11%
Antofagasta (ANTO) 445.50p -1.85%
Ashtead Group (AHT) 844.00p -1.57%
Burberry Group (BRBY) 1,309.00p -1.36%
Admiral Group (ADM) 1,928.00p -1.33%
London Stock Exchange Group (LSE) 2,790.00p -1.31%
RSA Insurance Group (RSA) 471.40p -1.11%

FTSE 250 - Risers

Ocado Group (OCDO) 326.50p 8.58%
Brewin Dolphin Holdings (BRW) 280.40p 8.47%
Drax Group (DRX) 287.40p 5.90%
Stagecoach Group (SGC) 263.20p 5.32%
Softcat (SCT) 323.90p 3.95%
Shawbrook Group (SHAW) 311.00p 3.67%
Wizz Air Holdings (WIZZ) 1,875.00p 3.02%
McCarthy & Stone (MCS) 260.50p 2.44%
IP Group (IPO) 177.20p 2.37%
Tate & Lyle (TATE) 588.00p 2.35%

FTSE 250 - Fallers

Serco Group (SRP) 98.20p -4.38%
Restaurant Group (RTN) 370.40p -4.12%
Kaz Minerals (KAZ) 159.70p -4.08%
Galliford Try (GFRD) 1,373.00p -4.05%
Marshalls (MSLH) 343.40p -3.27%
Acacia Mining (ACA) 263.40p -2.98%
OneSavings Bank (OSB) 309.40p -2.92%
Wood Group (John) (WG.) 591.00p -2.88%
SIG (SHI) 139.60p -2.65%
Sophos Group (SOPH) 215.00p -2.63%