London midday: FTSE extends gains as energy, mining shares rally

London stocks had pushed further into the black by midday on Monday, underpinned by a strong showing from heavyweights BP and Shell and solid gains in the mining sector, as investors continued to monitor the Russia-Ukraine conflict.

The FTSE 100 was up 0.8% at 7,461.71, while oil prices surged again following attacks on oil facilities in Saudi Arabia.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: "Optimism is seeping away about progress in talks to achieve a ceasefire in Ukraine and that’s sent the price of oil on the march upwards again amid heightened worries about supply. As Ukraine refuses to surrender to Russian forces in Mariupol despite the devastating siege of city, the chances of a breakthrough in negotiations are fading, with a gulf in position separating the two countries.

"Brent crude has jumped 4% to more than $112 a barrel as tensions remain high. Investors are eyeing key NATO talks later this week, aimed at tightening the sanctions screw on Russia and the prospect of a European crude embargo is expected to be put on the table once more.

“As war rages in Ukraine - another protracted conflict is also adding to the nervousness around the oil price, after Houthi rebels attacked a refinery in Saudi Arabia. It’s officially a temporary outage but still has undermined the effect of Saudi Aramco’s pledge to ramp up production in coming years."

On home shores, the latest data from property website Rightmove showed that asking prices for homes increased at their highest rate in almost two decades as demand vastly outstripped supply and despite soaring inflation.

Asking prices recorded between February 13 and March 12 were 10.4% higher year on year and 1.7% higher than the previous month’s reading - the biggest monthly jump since 2004.

They have now broken through the £350,000 barrier for the first time as the average price hit £354,564 in March.

Rightmove said the number of prospective buyers was double the number of homes for sale, a record for the time of year.

"We forecast a less frothy market in the second half of the year, as economic headwinds lead to a more evenly balanced market, though demand will still outstrip supply," it said.

In equity markets, copper miner Antofagasta was the standout performer on the FTSE 100 after it agreed with Barrick Gold to and the governments of Pakistan and Balochistan to exit the Reko Diq project.

Others miners were also firmer as metals prices advanced, with Anglo American, Glencore and Rio Tinto all up, while oil giants Shell and BP gushed higher as oil prices jumped again.

Elsewhere, consumer products giant PZ Cussons ticked higher after saying it had bought UK baby and child personal care company Childs Farm for £36.8m.

Hargreaves Lansdown fell after a downgrade to ‘underperform’ at Jefferies, while Balfour Beatty was knocked lower by a downgrade to ‘underweight’ at Morgan Stanley.

Outside the FTSE 350, Pendragon shares surged following a report the car dealership has rejected a secret £400m takeover approach from its largest shareholder, the Hedin Group.

Market Movers

FTSE 100 (UKX) 7,461.71 0.77%
FTSE 250 (MCX) 21,025.47 -0.62%
techMARK (TASX) 4,344.21 -0.30%

FTSE 100 - Risers

Antofagasta (ANTO) 1,721.50p 5.81%
Anglo American (AAL) 3,847.50p 4.42%
Airtel Africa (AAF) 147.90p 3.43%
Shell (SHEL) 2,002.50p 3.13%
BP (BP.) 371.50p 3.08%
Prudential (PRU) 1,099.00p 2.85%
Glencore (GLEN) 491.95p 2.65%
Rio Tinto (RIO) 5,759.00p 2.46%
BT Group (BT.A) 182.25p 2.42%
Burberry Group (BRBY) 1,736.50p 2.09%

FTSE 100 - Fallers

Ocado Group (OCDO) 1,147.50p -3.49%
Flutter Entertainment (CDI) (FLTR) 9,302.00p -3.02%
Pearson (PSON) 788.40p -2.43%
Hargreaves Lansdown (HL.) 1,048.50p -2.28%
Spirax-Sarco Engineering (SPX) 12,805.00p -2.03%
Intermediate Capital Group (ICP) 1,728.50p -2.01%
Entain (ENT) 1,688.00p -2.00%
Smurfit Kappa Group (CDI) (SKG) 3,527.00p -1.37%
Aveva Group (AVV) 2,577.00p -1.30%
SEGRO (SGRO) 1,328.00p -1.30%

FTSE 250 - Risers

Polymetal International (POLY) 133.30p 10.17%
Tullow Oil (TLW) 50.56p 5.93%
VinaCapital Vietnam Opportunity Fund Ltd. (VOF) 501.00p 2.56%
Capricorn Energy (CNE) 210.20p 2.24%
Impax Environmental Markets (IEM) 466.50p 2.19%
NCC Group (NCC) 181.40p 2.14%
Bellevue Healthcare Trust (Red) (BBH) 181.00p 2.03%
LXI Reit (LXI) 144.80p 1.97%
Telecom Plus (TEP) 1,486.00p 1.78%
BlackRock World Mining Trust (BRWM) 727.00p 1.68%

FTSE 250 - Fallers

Baltic Classifieds Group (BCG) 139.50p -7.00%
XP Power Ltd. (DI) (XPP) 3,740.00p -4.96%
Network International Holdings (NETW) 237.60p -4.92%
AJ Bell (AJB) 306.00p -4.85%
National Express Group (NEX) 229.60p -4.49%
TBC Bank Group (TBCG) 1,016.00p -4.15%
Savills (SVS) 1,181.00p -3.91%
Wetherspoon (J.D.) (JDW) 809.50p -3.86%
Fidelity China Special Situations (FCSS) 260.00p -3.70%
NB Private Equity Partners Ltd. (NBPE) 1,720.00p -3.37%