FTSE 250: Miners surge as China's central bank cuts interest rates

Mining companies dominated the FTSE 250 risers after China’s central bank surprised the market with an interest-rate cut. The cut was the first in two years, with the intention of boosting growth and was accompanied by the freeing up of deposit rates.

As such, results reversed from yesterday’s reports of a stagnant manufacturing sector. Vedanta Resources, Lonmin, Evraz, Blackrock, World Mining Trust, Kaz Minerals and Polymetal International all saw their share prices surge, a considerable rebound from Thursday’s heavy losses.

Ophir Energy took a hit on Friday after analysts at Liberum Capital restated their ‘hold’ rating in a note to investors, while Westhouse Securities downgraded shares to a ‘neutral’ rating. More broadly, six analysts have rated the stock with a 'hold' rating and 11 have assigned a 'buy' rating to the company, averaging at a stock rating of ‘buy’. The slump follows an oil explorer in Africa agreeing to buy London-based producer Salamander Energy in an all-stock offer.

Tullett Prebon also saw its shares plummet after it announced it was set to raise over £32m from a placing to help fund the acquisition of PVM Oil Associated. The purchase is expected to complete next week and will require a payment of £71.1m through the issue of 25.8m shares, representing 11.8% of its issued share capital.

Serco also saw its share prices drop, as Credit Suisse lowered its rating from ‘neutral’ to ‘underperform’ and more than halved its target price for the stock, saying that the shares are ‘too expensive’. The downgrade follows Serco's unscheduled strategic update and profit warning last week, as it proposed a £550m rights issue to strengthen its balance sheet.

FTSE 250 Risers

Vedanta Resources (VED) 812.00p +7.98%

EnQuest (ENQ) 70.00p +7.12%

Lonmin (LMI) 189.60p +6.04%

Micro Focus International (MCRO) 1,120.00p +5.66%

Evraz (EVR) 146.00p +5.34%

Centamin (DI) (CEY) 52.65p +5.09%

BlackRock World Mining Trust (BRWM) 358.40p +4.95%

Paragon Group Of Companies (PAG) 386.10p +4.80%

Kaz Minerals (KAZ) 247.40p +4.56%

Polymetal International (POLY) 563.00p +4.45%

FTSE 250 Fallers

Ophir Energy (OPHR) 169.50p -5.89%

Tullett Prebon (TLPR) 253.50p -5.41%

Serco Group (SRP) 170.60p -4.69%

TalkTalk Telecom Group (TALK) 283.00p -3.54%

Mitchells & Butlers (MAB) 352.50p -2.08%

Northgate (NTG) 481.50p -1.99%

IP Group (IPO) 198.80p -1.88%

Countrywide (CWD) 415.50p -1.73%

Amlin (AML) 430.10p -1.71%

PayPoint (PAY) 887.50p -1.66%