Sector movers: Metal stocks drive markets up

Towards the end of trading, the FTSE 100 was up 0.45% or 28.44 points higher at 6,364.79, while the FTSE 250 dropped 0.35% or 58.87 points to 16,972.35.

At 1532 BST, the Brent front month futures contract was up 1.15% or 59 cents to $51.92 per barrel while WTI futures were up 0.94% or 45 cents to $48.26.

Past the midway point of the LME session, three-month delivery contracts of primary aluminium (up 1.55%), tin (up 2.23%), and zinc (up 2.17%) were heading higher also helping push up industrial metal companies’ stocks. However copper was down 3.25%.

Mining company Fresnillo came in a close second of the risers after HSBC reiterated its buy rating and raised the company’s target price from 760p to 810p. It said "we look for progressively improving operational results, higher gold and silver prices and expect improved rating to move the stock price up”.

BHP Billiton also had an uptick after Jefferies commented on the metals and mining industry. “If commodity prices stabilise as we expect, highly leveraged miners should take advantage of the opportunity to strengthen their balance sheets via asset sales and equity issuances. Miners with financial flexibility are best positioned to buy high quality assets at a very weak point in cycle."

On the FTSE 250. Kaz Minerals was the key driver on the back of positive industrial metal price moves, along with Evraz and Vedanta Resources.

Food and drug retailers were also boosted thanks to UBS which issued a note saying it sees scope for Tesco to recover trading and earnings momentum over the new two to three years. It reiterated its buy rating.