London close: Energy and mining plays lead FTSE higher
London equity markets finished in positive territory on Tuesday, with energy and mining stocks pacing the advance as investors mulled an encouraging reading on the UK manufacturing sector.
The FTSE 100 ended the session up 0.82% at 7,080.46, and the FTSE 250 was 0.84% firmer at 22,874.99.
Sterling was in the red, meanwhile, last trading 0.32% weaker against the dollar to $1.4166, and sliding 0.44% on the euro to €1.1573.
“Gains in stock indices have mirrored the sunny UK weather, with the FTSE 100 rising 70 points on its first day back from the long weekend,” said IG chief market analyst Chris Beauchamp.
“Some of the early positivity has been knocked off the market this afternoon, but overall most indices are still in positive territory and in the case of Europe are recording solid gains.
“US and UK investors have returned from their holiday in bullish form, picking up where they left off on Friday.”
Beauchamp noted that growth sectors including healthcare and technology were continuing to struggle compared to the cyclical areas such as mining and banking.
“In the UK, commodity prices have driven the gains for the FTSE 100, thanks to the strong showing in the US and Chinese manufacturing PMIs.”
Earlier, a survey showed manufacturing growth surged to a new record high in May as Covid restrictions eased.
The IHS Markit/CIPS manufacturing purchasing managers’ index increased to 65.6 from 60.9 in April.
Although that was slightly weaker than the flash estimate of 66.1, it was above July 1994's previous record high of 61.0.
A level below 50.0 signals contraction, while a level above indicates expansion.
Markit’s new orders index jumped to 68.1 in May from 61.9 in April, hitting the highest level since the survey began in 1992.
Looser pandemic restrictions and high levels of pent-up demand meant that the rapid revival in labour market conditions continued, with staffing levels also rising at a record pace, the survey found.
“The UK PMI surged to an unprecedented high in May, as record growth of new orders and employment supported one of the steepest increases in production volumes in the near 30-year survey history,” said Rob Dobson, director at IHS Markit.
“Growth is being boosted by the unlocking of economies from Covid-19 restrictions and ongoing vaccination programs.
“This is being felt across the globe, as highlighted by a record rise in new export business during the latest survey month.”
In equity markets, miners shone as copper and iron prices rose, with Anglo American up 4.04%, Antofagasta rising 4.01%, BHP Group ahead 3.58%, Rio Tinto growing 3.97%, and Glencore 2.97% firmer.
Oil giants BP and Shell gushed 2.81% and 1.81% higher, respectively, as oil prices advanced, with Brent crude above $70 a barrel for the first time since March after OPEC predicted tighter markets.
Waste management company Biffa rallied 2.74% after saying it swung to a full-year pre-tax loss but striking an upbeat note on the outlook.
DIY retailer Wickes Group - which was recently spun off from Travis Perkins - gained 4.69% as it reported a surge in year-to-date sales and lifted its full-year profit expectations.
On the downside, pharmaceuticals group Vectura tumbled 12.2% as it traded without entitlement to the dividend.
Outside the FTSE 350, Amigo Holdings slid 12.05% as it said it faces insolvency after the High Court rejected a rescue plan by the guarantor lender that would have seen compensation payments for mis-selling capped.
Market Movers
FTSE 100 (UKX) 7,080.46 0.82%
FTSE 250 (MCX) 22,874.99 0.84%
techMARK (TASX) 4,377.66 -0.12%
FTSE 100 - Risers
Rio Tinto (RIO) 6,318.00p 4.19%
Weir Group (WEIR) 1,995.50p 3.93%
Anglo American (AAL) 3,257.00p 3.89%
Antofagasta (ANTO) 1,603.50p 3.82%
WPP (WPP) 1,010.50p 3.75%
BHP Group (BHP) 2,199.00p 3.58%
Evraz (EVR) 658.80p 3.32%
Intermediate Capital Group (ICP) 2,171.00p 3.23%
Pearson (PSON) 843.60p 3.10%
Whitbread (WTB) 3,279.00p 3.05%
FTSE 100 - Fallers
HSBC Holdings (HSBA) 446.30p -1.98%
Standard Chartered (STAN) 500.20p -1.50%
Burberry Group (BRBY) 2,107.00p -1.31%
London Stock Exchange Group (LSEG) 7,482.00p -1.21%
AstraZeneca (AZN) 7,957.00p -1.11%
B&M European Value Retail S.A. (DI) (BME) 569.80p -1.08%
Avast (AVST) 466.00p -1.06%
Ocado Group (OCDO) 1,875.50p -0.71%
Standard Life Aberdeen (SLA) 272.70p -0.62%
Flutter Entertainment (CDI) (FLTR) 13,135.00p -0.57%
FTSE 250 - Risers
Tullow Oil (TLW) 55.68p 8.54%
Trainline (TRN) 302.80p 6.62%
IWG (IWG) 381.20p 5.89%
Provident Financial (PFG) 251.60p 5.38%
4Imprint Group (FOUR) 3,020.00p 5.04%
Restaurant Group (RTN) 127.20p 4.78%
Wickes Group (WIX) 268.00p 4.69%
Energean (ENOG) 803.50p 4.28%
Centamin (DI) (CEY) 114.25p 4.15%
Ferrexpo (FXPO) 466.40p 4.11%
FTSE 250 - Fallers
Vectura Group (VEC) 139.60p -12.20%
Marks & Spencer Group (MKS) 158.90p -3.93%
IntegraFin Holding (IHP) 526.00p -3.31%
Bytes Technology Group (BYIT) 485.40p -2.92%
Just Group (JUST) 107.50p -2.27%
FDM Group (Holdings) (FDM) 972.00p -2.21%
Hilton Food Group (HFG) 1,170.00p -2.01%
National Express Group (NEX) 297.60p -1.92%
Civitas Social Housing (CSH) 116.60p -1.52%
Cineworld Group (CINE) 91.72p -1.51%