FTSE 100 movers: BHP and Rio rally on Citi note; gold miners slump

London’s FTSE 100 was up 0.3% to 6,751.50 in afternoon trade as investors largely shrugged off Italian Prime Minister Matteo Renzi’s defeat in Sunday’s constitutional referendum and subsequent resignation.

Rio Tinto was on the front after Citigroup upgraded the stock to ‘neutral’ from ‘sell’ and pushed the target price to 3,300p from 2,550p.

“We expect strong 2H cash flow generation to drive gearing below the targeted 20-30% range by end-16 (17%), which opens the debate about capital management in 2017. Assuming a 50% payout ratio leaves $6bn of excess capital (more than 8% of market cap) that could be returned in 2017, with a further $2.6bn in 2018 (around 3.5% of market cap).”

BHP Billiton also got a lift as Citi upped the stock to ‘buy’ from ‘sell’ and lifted the price target to 1,500p from 1,100p

On the downside, Fresnillo, Randgold Resources and Polymetal took a hit as gold and silver prices declined.

Elsewhere, Royal Mail was on the back foot following a report in The Telegraph that the company’s nationalised pension will soon be run by an outside private company.

Risers

Antofagasta (ANTO) 716.00p 3.24%
Tesco (TSCO) 211.80p 2.44%
BHP Billiton (BLT) 1,333.50p 2.26%
Burberry Group (BRBY) 1,436.00p 1.70%
Rio Tinto (RIO) 3,052.50p 1.56%
Morrison (Wm) Supermarkets (MRW) 219.80p 1.52%
Carnival (CCL) 3,965.00p 1.48%
ITV (ITV) 169.30p 1.44%
DCC (DCC) 6,010.00p 1.35%
GKN (GKN) 307.10p 1.32%

Fallers

Fresnillo (FRES) 1,152.00p -3.84%
Randgold Resources Ltd. (RRS) 5,635.00p -3.26%
Polymetal International (POLY) 729.50p -2.28%
Severn Trent (SVT) 2,089.00p -1.79%
United Utilities Group (UU.) 867.00p -1.76%
Sky (SKY) 756.50p -1.43%
Babcock International Group (BAB) 938.50p -1.21%
BT Group (BT.A) 354.30p -1.20%
Royal Mail (RMG) 459.60p -0.99%
Dixons Carphone (DC.) 342.90p -0.98%