FTSE 100 movers: Anglo American surges as Blackrock increases stake

The FTSE 100 was set to finish the week just in the black, up 1.32 points (0.02%) to 5,900.08 points by mid-afternoon on Friday.

Anglo American led the risers for the second day running, while its sector peers were tracking the other way. It followed shares in Anglo rising on Thursday, up 25% at one point in its biggest ever one day move.

SP Angel said it believed hedge funds and other investors may have been compelled to short the stock on stories the miner might fall out of the FTSE 100. On top of that, Blackrock increased its stake in the company to 5% on Friday.

However Rio Tinto and BHP Billiton led the fallers list, not too far away from Randgold Resources. Accendo Markets’ Michael van Dulken said the miners were waving the wooden spoon this morning. “[The miners were] giving up ground as traders who dared bottom-pick over the last 3 weeks sensibly book some handsome and very welcome 10-40% profits following a helpful combination of USD weakness, short covering, technical breakouts and brokers suggesting a bottom for some base metals.”

Retailing company Kingfisher and fashion label Burberry rose as news came that January sales lured bargain hunters back to the High Street in January, according to figures released by accountancy and business advisory firm BDO.

The BDO’s monthly High Street Sales Tracker saw 1.4% growth in year-on-year sales last month, with fashion sales particularly strong, up 1.9%. Meanwhile, the lifestyle sector saw sales rise 0.3%, while homeware sales increased 0.8% and non-store sales grew 20.2% compared to the same period a year ago.

The figures are likely to provide some comfort to retailers, after December’s data revealed the worst Christmas trading on the high street since 2008. Fashion sales were up over 5% year-on-year in the first two weeks of the month as shoppers continued to spend beyond the first week of January, something that failed to materialise last year. However, LFL sales moved back into negative territory once the sales period ended, the BDO said.

Shares in Royal Mail sank as the Government sets the wheels in motion to dispose of its final stake in Royal Mail. A ministerial statement was tabled in Parliament, confirming the final 1% stake the Government held would be given to the company’s 140,000 employees which was announced in October 2015.

Postal workers wouldn’t be able to sell the shares for three years as per previous shares gifted to the staff. The decision caps off a two-year long privatisation process marked by allegations that the state sold too cheap. Postal workers received 11% of the company as a part of the privatisation.

FTSE 100 - Risers

Anglo American (AAL) 347.10p 5.73%
GKN (GKN) 273.50p 3.17%
Smiths Group (SMIN) 946.00p 3.16%
Standard Chartered (STAN) 450.30p 2.94%
Kingfisher (KGF) 328.50p 2.78%
Tesco (TSCO) 173.95p 2.38%
Babcock International Group (BAB) 907.50p 2.14%
Aberdeen Asset Management (ADN) 245.50p 2.08%
Burberry Group (BRBY) 1,209.00p 2.03%
Mondi (MNDI) 1,173.00p 2.00%

FTSE 100 - Fallers

Rio Tinto (RIO) 1,786.50p -3.85%
BHP Billiton (BLT) 692.90p -2.76%
Inmarsat (ISAT) 1,041.00p -2.53%
Randgold Resources Ltd. (RRS) 5,190.00p -1.52%
Royal Mail (RMG) 442.90p -1.45%
BAE Systems (BA.) 483.40p -1.31%
Berkeley Group Holdings (The) (BKG) 3,522.00p -1.29%
Worldpay Group (WI) (WPG) 303.30p -1.01%
SSE (SSE) 1,395.00p -0.99%
Diageo (DGE) 1,810.00p -0.98%