FTSE 100 movers: Miners dominate as market claws back losses

After starting the day in the red, the FTSE 100 clawed back to even territory by rising 3.09 points (0.05%) to 5,880.09 by mid-afternoon.

Miners dominated the risers list as oil prices stayed above $30 a barrel and gave the market some confidence. At 1416 GMT, Brent crude had risen 1.61% to $30.99 while West Texas Intermediate was up 1.45% to $30.78. Anglo American was in pole position, followed close behind by Glencore, Antofagasta and Rio Tinto.

“When we consider that the fundamental factors at play – increased Iraq output, the return of Iran to the market and another rout in China overnight – it would not be unreasonable to expect broad declines in oil today, given how this year has gone so far,” said Craig Erlam, senior market analyst at Oanda. “Instead the dip has so far been bought which suggests to me that a move back towards $36.50 may be on the cards for both Brent and WTI.”

Fresnillo and Randgold Resources also saw significant gains after Chinese markets fell, prompting investors to put their money in the safety of precious metals.

The Shanghai Composite Index closed down 6.42% to 2,749.79, which was its lowest close since December 2014. The index was down 47% from its pre-crash peak in June 2015. It was also the largest single-day percentage loss since Beijing abolished the circuit-breaker mechanism on 8 January.

“Randgold and Fresnillo diverged positively on the back of a stronger demand for the safety of precious metals, said Ipek Ozkardeskaya, market analyst at London Capital Group. “Gold extended gains to $1117 as risk-off investors were on their uppers.”

Bankers also saw large gains after UBS re-initiated coverage on the five large UK banks, backed by new models and analytical support.

It upgraded Royal Bank of Scotland to ‘buy’ from ‘neutral’, cutting the target price to 350p from 363p. UBS argued that until now, the bank's small index weight - 0.6% of the FTSE 100 - and legacy issues have given investors sufficient excuse to avoid the shares. However, “the recent selloff has seen RBS fall too far, in our opinion, leaving it a lower risk and more attractive return prospect than the market appreciates.”

Lloyds Banking Group, which UBS rates at ‘buy’ with a slightly lower price target of 88p from 97p, remains the bank’s key call. “Though the UK rate view presents risks to 2017 income levels, we think LBG has more room to manage interest income than the market believes, via mix change, and deposit and wholesale funding re-pricing.”

Despite positive results, Dixons Carphone shares slipped throughout the day. The retailer reported positive sales growth in the 10 weeks to 9 January, including a bumper Black Friday.

It reported 5% increases in like-for-like revenues across its European regions, and also said it expected group headline profit before tax to be in the range of £440m-£450m for the year, slightly ahead of consensus. Its headline like-for-like revenues were up 5% in the UK and Ireland during the ten week period, 3% in the Nordics, and 9% in Southern Europe. "The two-humped camel shape that emerged last year was further accentuated with an all-time record day on Black Friday and a strong promotional period after Christmas", said group chief executive Seb James.

Shares in EasyJet also fell after it said the Sharm el-Sheikh disaster and the Paris attacks hit the budget airline’s revenue for the three months to 31 December, resulting in lower demand and yield in November and December, offsetting strong revenue per seat performance in October. As a result, revenue per seat was down 3.7% on a constant currency basis.

Total revenue was affected by the events as well as negative foreign exchange movements, down 0.1% to £930m. The airline has also reduced its cost per seat by 3.7% at constant currency by accelerating its cost improvement plans as well as the benefit of lower fuel costs. It said profit before tax for the year to 30 September 2016 is in line with market expectations.

FTSE 100 - Risers

Anglo American (AAL) 248.20p 9.53%
Glencore (GLEN) 86.80p 7.36%
Fresnillo (FRES) 684.00p 3.95%
Antofagasta (ANTO) 376.00p 3.52%
Rio Tinto (RIO) 1,660.50p 3.20%
Randgold Resources Ltd. (RRS) 4,734.00p 3.00%
Lloyds Banking Group (LLOY) 64.57p 2.26%
Burberry Group (BRBY) 1,204.00p 2.21%
Royal Bank of Scotland Group (RBS) 256.80p 2.19%
Tesco (TSCO) 158.20p 1.61%

FTSE 100 - Fallers

Mondi (MNDI) 1,159.00p -2.77%
Dixons Carphone (DC.) 455.70p -2.44%
easyJet (EZJ) 1,592.00p -2.39%
Provident Financial (PFG) 2,848.00p -2.37%
BT Group (BT.A) 461.80p -1.95%
Kingfisher (KGF) 317.80p -1.88%
Intu Properties (INTU) 288.90p -1.83%
ITV (ITV) 258.50p -1.67%
Relx plc (REL) 1,170.00p -1.60%
Ashtead Group (AHT) 955.50p -1.49%