Sector Movers: Beverage, natural resources stocks lead London market higher
Updated : 17:33
Natural resources and beverages stocks led the London market higher on Tuesday, with Weir Group benefitting from the support of BlackRock.
The FTSE 100 rose 0.87% or 53.01 points to 6,137.60, while the FTSE 250 was 0.21% or 36.15 points higher at 16,961.84. Beverage stocks SABMiller (up 2.76%) and Coca-Cola HBC (up 2.68%) were among the biggest blue chip gainers.
Selected natural resources midcaps also registered an uptick despite base metal futures falling and oil benchmarks staying low. As platinum prices saw a limp recovery, miner Lonmin up 9.05% or 1.90p to 22.90p, led the FTSE 250 risers.
Hunting (up 8.58%), Tullow Oil (up 4.25%), Centamin (up 4.12%) and Petrofac (up 3.60%) made up the remainder of the FTSE 250 top five. However, blue chip miners did not see an appreciable uptick.
Glencore slid after saying the company operating the Katanga mining project in the Democratic Republic of Congo will suspend production at the site for 18 months.
Katanga Mining confirmed the suspension, adding it will continue to carry out the $880m investment into processing plant upgrades at the project, in which Glencore owns a 74% stake.
On the positive side, along with midcap oilfield services peers Petrofac and Hunting, Weir Group led the FTSE 100 gainers apparently due to Blackrock calling a bottom in the company’s shares, which are at a five-year low, increasing its holding above 5% via a contract for difference.
It saw Weir shares trade 4.85% or 60p higher at 1298p. The other major story of the day was ARM Holdings (up 3.43%) as the chipmaker said investments in the company are likely to add about $40m in revenues in 2016, rising to $200m in 2020 on high demand from smartphone manufacturers.
Finally, selected retail stocks continued to suffer. A big faller was retailer Kingfisher after the owner of B&Q, Screwfix and France's Castorama posted lower interim pre-tax profits and a cautious outlook about prospects in France. Supermarket leader Tesco also ended up among the blue chip retail sector fallers alongside Kingfisher.