Commodities bounce back driving up FTSE

Following a difficult few days for the FTSE with continuing European debt woes and poor GDP figures, the index bounced back as commodities recovered some of their losses. Vodafone was also a key stock providing support on the leaderboard.

Chris Bradshaw
shareprices.com - Wednesday, January 26, 2011

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Vodafone Group

With miners halting their downward slump to become the top sector of the day, the index rose by 79 points reaching 5997 by 11.34 GMT, creeping closer to breaking back through the 6000 barrier. The commodities were strengthened by a US proposition to slash corporate tax, driving the price of oil and metals higher. Rio Tinto was a notable riser of the day, adding 2.9 per cent to its value.

The majority of oilers also saw their prices rise, following the trend for the sector with BG Group, soaring by 3.9 per cent to become the FTSE 100's top flyer of the day. The increase was driven by the firm's announcement that oil had been confirmed in its Carioca region, near Brazil.

BP was one energy company that bucked the trend, dropping 0.9 per cent as a result of a downgrade in broker rating.

Elsewhere in the market, Vodafone provided further strength to the index by climbing 2 per cent following stake acquisition speculation and good results from its US partnership with Verizon Communications.

By lunchtime on Wednesday the marker had very few fallers of note, with just Scottish and Southern Energy and Compass Group both falling foul of ex-dividend factors.

Investors await with interest the latest update from the Federal Reserve Open Committee Meeting as well as the US housing sales figures.

 

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