Sector Movers: Resource stocks keep London market on positive turf

At the close of proceedings, the FTSE 100 ended 1.47% or 87.50 points higher at 6037.73, while the FTSE 250 ended 0.81% or 130.74 points higher at 16,288.80.

Oil futures spiked after the International Energy Agency put out forecasts predicting a gradual supply correction over the next two years.

Easing concerns about the supply glut, the agency noted in its medium-term outlook that US shale oil production was expected to fall by 600,000 barrels per day (bpd) this year and another 200,000 bpd in 2017.

Additionally, while Iran remains non-committal, Nigeria suggested it would be in favour of an oil production freeze initiative put forward by Saudi Arabia, Russia, Venezuela and Qatar last week. At 1653 GMT, the Brent front-month oil futures contract was up 5.15% or $1.70 at $34.71 per barrel, while WTI was up 6.68% or $1.98 at $31.62 per barrel.

Meanwhile, precious metals headed lower shedding some of the past week’s gains. The COMEX front-month gold futures contract was down 1.58% or $19.40 at $1,211.40 an ounce, while spot gold was down 1.26% or $15.42 cents to $1,211.38 an ounce.

Spot platinum fell 1.13% or $10.65 to $928.75 an ounce, but COMEX silver fell 1.03% or 16 cents to $15.22 an ounce.

Headline base metal futures stayed in positive territory on the London Metal Exchange. At 1635 GMT, three-month futures contracts of tin (up 1.1%), nickel (up 3.4%), copper (up 2.3%), primary aluminium (up 1.7%) and lead (up 1.0%) posted decent upticks.

Predictably, miners led the gains with Glencore (up 11.82%), Anglo American (up 10.79%), BHP Billiton (up 8.55%), Rio Tinto (up 8.43%) and Antofagasta (up 7.70%) being the biggest FTSE 100 risers. Vedanta Resources (up 7.27%) led the FTSE 250 gainers.

However, concerns over a possible British Exit or ‘Brexit’ from the European Union and doubts over the economy weighed on housebuilders. Berkeley Group (down 4.76%), Taylor Wimpey (down 4.74%), Persimmon (down 4.32%) and Barratt’s (down 4.19%) were among the biggest FTSE 100 fallers.

Elsewhere, the focus was on retail stocks. Home Retail advanced following media reports over the weekend that Sainsbury’s could seek an extension to the Takeover Panel’s 18 March deadline, after South African retailer Steinhoff made an offer to the Argos owner.

Primark owner Associated British Foods climbed as it said full year profits will be better than expected, supported by the recent weakening of sterling.