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

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.