London close: UK equities rise to two-week high despite weak commodity stocks

The FTSE 100 finished 0.5% higher at 6,577, but pulled back after reaching a high of 6,620.95 earlier on. It has not exceeded this level since 8 December when it closed at 6,672.15.

The index surged 4% last week, rising nearly 6% over the past four sessions alone. This was the Footsie’s best weekly performance since December 2011 after the Federal Reserve promised to be “patient” about the first rate rise and markets rebounded strongly after a recent sell-off.

"Last week’s equity market moves higher have been added to today, as traders have been able to muster up enough enthusiasm, partially due to the prospect of this shortened week," said analyst Alastair McCaig from IG.

UK equity markets are open as normal until Wednesday when they close half a day early for Christmas Eve. They will not open again until Monday 29 December.

Economic data was thin on the ground on Monday, though figures from Haart showed that London house prices fell below £500,000 on average in November. The survey revealed that London house prices fell overall by 1.9% with prices in some of the wealthier south-western districts in the capital plunging by 14%, further evidence that 2014’s property boom is cooling.

Mining and energy stocks tank

After an earlier rise, falling commodity prices pushed stocks in the mining and energy sectors lower. Weaker gold and silver prices pushed precious-metal miners Randgold Resources and Fresnillo into the red. Anglo American and Antofagasta also finished with losses.

Oil stocks also declined as crude prices resumed their recent sell-off. Brent futures were 2% lower at $60.14 a barrel by the end of the session, dragging shares of Tullow Oil, BG Group, Soco International and Premier Oil down.

Home improvement retailer Kingfisher edged higher after agreeing to sell a controlling 70% stake in its B&Q China business to Wumei Holdings for £140m. New boss Véronique Laury said the deal will "help us to release the financial value of our business in China".

Tesco was lower after the Financial Reporting Council launched an inquiry into the "preparation, approval and audit" of Tesco's historic financial statements by the company's auditor PricewaterhouseCoopers, with news of a fresh investigation weighing on investor confidence.

Kier Group was in demand after its joint venture with Clancy Docwra was named as the preferred bidder for a £1bn Thames Water infrastructure project. The contract, which an estimated value to the KCD joint venture of £500m over the next five years, will run for up to 15 years.

Market Movers
techMARK 2,959.52 +0.77%
FTSE 100 6,576.74 +0.48%
FTSE 250 15,991.54 +0.65%

FTSE 100 - Risers
Admiral Group (ADM) 1,339.00p +2.29%
Compass Group (CPG) 1,107.00p +1.93%
BAE Systems (BA.) 471.30p +1.86%
Kingfisher (KGF) 330.10p +1.82%
Johnson Matthey (JMAT) 3,410.00p +1.76%
Smith & Nephew (SN.) 1,108.00p +1.74%
Standard Chartered (STAN) 943.00p +1.73%
Centrica (CNA) 277.30p +1.69%
Reed Elsevier (REL) 1,096.00p +1.67%
London Stock Exchange Group (LSE) 2,247.00p +1.67%

FTSE 100 - Fallers
Randgold Resources Ltd. (RRS) 4,150.00p -6.34%
Tullow Oil (TLW) 407.00p -4.05%
Fresnillo (FRES) 714.00p -3.38%
TUI AG Reg Shs (Post- 16/12/14)(DI) (TUIJ) 1,038.00p -3.26%
Tesco (TSCO) 181.00p -2.37%
BG Group (BG.) 886.10p -1.69%
Anglo American (AAL) 1,173.50p -1.63%
Weir Group (WEIR) 1,874.00p -1.63%
RSA Insurance Group (RSA) 445.20p -0.98%
Antofagasta (ANTO) 738.50p -0.81%

FTSE 250 - Risers
Evraz (EVR) 142.70p +9.68%
Bank of Georgia Holdings (BGEO) 2,067.00p +9.42%
Nostrum Oil & Gas (NOG) 450.00p +7.14%
Home Retail Group (HOME) 201.80p +5.27%
Greggs (GRG) 737.50p +4.54%
Polymetal International (POLY) 573.00p +4.18%
Mitchells & Butlers (MAB) 374.00p +3.89%
Afren (AFR) 49.39p +3.83%
CLS Holdings (CLI) 1,525.00p +3.74%
Ocado Group (OCDO) 394.70p +3.46%

FTSE 250 - Fallers
Pets at Home Group (PETS) 199.10p -6.00%
IP Group (IPO) 215.30p -5.53%
Zoopla Property Group (WI) (ZPLA) 200.20p -4.71%
Synthomer (SYNT) 224.40p -4.18%
Soco International (SIA) 296.00p -4.11%
RPC Group (RPC) 517.00p -3.36%
Premier Oil (PMO) 166.00p -2.98%
Petrofac Ltd. (PFC) 704.50p -2.49%
Lonmin (LMI) 169.50p -2.36%
Kaz Minerals (KAZ) 241.70p -2.22%