FTSE at new 21 month high as resource stocks thrive

The FTSE 100 ended another session at a 21 month high, climbing 0.6 per cent to 5,780.35. The index was boosted primarily by resource stocks, including a significant jump in the share price of Petrofac Ltd – up 6.44 per cent. Other stocks that gained include Man Group, up 3.11 per cent; Kingfisher up 3.09 per cent and Admiral Group up 2.63 per cent.

Chris Bradshaw
shareprices.com - Tuesday, April 06, 2010

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Miners were big winners as commodity prices showed an increase in response to demand optimism after positive statistics from the US, including a surprising rise in non-farm payroll data. Oil surged past $87 per barrel and copper surged past the $8,000 per ton mark. Big winners amongst miners include Eurasian Natural Resources, up 3.35 per cent; Kazakhmys, up 3.03 per cent; Amec, up 2.71 per cent and Vendanta Resources up 2.48 per cent.

Other resource stocks also showed significant gains with Petrofac standing out as it gained 6.44 per cent to close at £13.60. Today was the first day of training for Petrofac after it demerged its oil and gas assets into a separate company, EnQuest. EnQuest shares finished trading at 98.8p each.

British Airways, Vodafone and BAE Systems were the biggest losers for the day, closing lower by 2.25 per cent, 1.35 per cent and 1.34 per cent respectively. Vodafone shares were sold as Verizon merger talks cooled and as investors remain concerned about Ofcom's decision last week to cut connection charges amongst mobile networks. BAE Systems lost as traders considered a Goldman Sachs note which rated the defence company as a "conviction sell".

Big winners on the FTSE 250 include Gem Diamonds, up 10.67 per cent and Inchcape, the automotive retail group which finished 6.40 per cent higher.

 

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