Sector movers: Miners get respite as London closes in positive territory

Mining, metals and oil and gas stocks arrested recent declines on Thursday, as the London market posted decent gains by the close of trading.

The FTSE 100 rose 1.82% or 110.79 points to 6,194.10, while the FTSE 250 rose 1.19% or 201.51 points at 17,087.24. With the Chinese markets closed for two days of public holidays to commemorate World War II, trading turnover was light across the London Metal Exchange but base metals continued to firm up.

Past the midway point of trading on the LME, all major futures contracts were trading higher. Three-month delivery contracts of primary aluminium (up 2.3%), copper (up 2.9%), lead (up 0.1%), nickel (up 0.8%), tin (up 0.7%) and zinc (up 0.9%) were all in positive territory.

Meanwhile, oil benchmarks saw a much calmer trading session in complete contrast to the volatility of recent trading days. At 1634 BST, the Brent front month futures contract was up 1.35% or 68 cents to $51.18 per barrel, while the WTI was up 2.21% or $1.02 to $47.27 per barrel, despite US inventories having risen 4.7m oil barrels last week.

As a consequence, natural resources stocks saw a predictable uptick. Glencore partially reversed recent declines to end as the leading blue chip stock, rising 6.64% or 8.15p at 130.95p. Peers Anglo American (up 6.03%) and BHP Billiton (up 4.27%) were also among the top FTSE 100 gainers.

Oil and gas blue chips BP and Royal Dutch Shell were in positive territory as well, alongside a plethora of mid to small oil and gas companies. However, Weir Group took a tumble, closing down 1.12% or 15 cents, on news of its relegation from the FTSE 100 to the FTSE 250.

On a similar note, beleaguered platinum miner Lonmin, shed 7.33% or 2.29p to 28.96p, on news of its eviction from the FTSE 250. Elsewhere, the aviation and travel sector saw a second successive session of good news as budget airline EasyJet flew higher after lifting its full-year profit guidance.

It now expects pre-tax profit for the year to the end of September to be between £675m and £700m, up from a previous range of £620m to £660m. The load factor for August was 94.4%, a new record for any month, while passenger numbers for the month were 7.06m, which was also a record.

Peer International Consolidated Airlines Group was in positive territory for a second day running after announcing on Wednesday that its offer for Aer Lingus is closed and it now controls 98.05% of the Irish carrier. IAG said that Aer Lingus shareholders who accepted the offer will receive payment for their shares within 14 days. This includes Ryanair, which had a nearly 30% stake in the carrier and the Irish government, which owned 25.1%.