FTSE rebounds on Wall Street turnaround and Kazakhmys results
The extended losing streak of the UK’s top index looks set to draw to a close today with global stock markets - most notably Wall Street - posting turnarounds, dragging the FTSE 100 index from a seven-week low. Topping the gainers charts are mining stocks, all buoyed by strong first-half results for Kazakhmys (LON:KAZ).
Kate Neilson
shareprices.com - Thursday, August 26, 2010
At 10:25BST, the blue-chip index is 0.6 per cent higher at 5,137,89 – a gain of over 28 points.
London investment sentiment was encouraged by a strong previous session across the Atlantic. US stocks ended a four-day losing streak with bargain hunting being top of the agenda despite less than emphatic home sales and manufacturing data.
London indices appear to be following suit, reclaiming much of the lost ground as investors eye cheap stock.
Miners have been top of that bargain agenda, boosted in turn by a strong six-month financial release from heavyweight group Kazakhmys. The company reported an 87 per cent rise in interim earnings to $1.3bn and said the outlook for copper markets “remains positive” maintaining their end of year outlook.
As a result, the stock has gained 36p to climb over 3.3 per cent higher. And it has dragged some fellow-sector stock with it.
Rio Tinto (LON:RIO) has posted gains in the region of 2.7 per cent and Xstrata (LON:XTA) improved by more than two per cent with an extra boost from its major shareholder Glencore International positing strong first-half results, too.
Fresnillo (LON:FRES), Eurasian Natural Resources (LON:ENRC) and Vedanta Resources (LON:VED) are also gaining in excess of 1.4 per cent with investors hoping firmer metal prices will mean similar profit gains to recent reports released.
Kazakhmys wasn’t the only blue-chip to release interim results, however fortunes were a little different away from the mining sector.
Industrial property landlord Segro (LON:SGRO) is topping the FTSE 100 fallers charts with a 3.5 per cent decline in share price after Evolution Securities cut its rating to “neutral” from “add” following its six-month results report and Diageo (LON:DGE), the world’s leading alcoholic beverage maker, had its 2011 earnings per share forecast cut by Credit Suisse bank on the back of disappointing results.
Banking stock is back in favour with prices considerably low. In fact, Barclays (LON:BARC), Royal Bank of Scotland (LON:RBS) and Lloyds Banking Group (LON:LLOY) are all between 2.2 and 1.7 per cent up with risk stocks now back on wish lists with stock prices low and metal prices signalling manufacturing may not be slowing down at the rate first presumed.
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