Sector movers: Insurers lead London market higher as miners get respite

Insurance firms led the London market higher on Tuesday, as miners recouped the previous session’s losses.

Just prior to the market close, the FTSE 100 closed up 50.15 points or 0.77% at 6555.28 while the FTSE 250 closed up 102.33 points or 0.70% at 17387.89, with insurance stocks firmly in the green triggered by Zurich Insurance’s bid for RSA Insurance Group.

The news sent RSA shares rocketing by 18.43% or 80.70p at 518.50p. Rivals Beazley (up 3.96%), Direct Line (up 2.50%), Hiscox (up 2.47%), Admiral Group (up 2.05%) and Lancashire Holdings (1.74%) also gained.

The market was also bolstered by mining and metals stocks staging a recovery. Most industrial metals bounced back in European trading recovering losses sustained during the previous session in wake of the Chinese equities sell-off on Monday.

Past the midway point in training on the London Metal Exchange, three-month contracts of primary aluminium (up 0.5%), copper (up 1.1%), lead (up 1.2%), nickel (up 2.0%), tin (up 5.2%) and zinc (up 1.4%) were seen recouping previous losses.

The uptick sent mining stocks higher. Among the blue chips Glencore (up 3.38%) and Johnson Matthey (up 3.75%) were riding high. Among the midcaps, the beleaguered Lonmin (up 7.85%) also saw an uptick, along with Kaz Minerals (6.19%).

Blue chips Antofagasta (2.27%), BHP Billiton (up 1.15%) and Rio Tinto (up 0.52%) were also trading higher.