High metal prices put miners up but BP falls ahead of dividend meeting

UK stocks are advancing for the fourth straight session this morning, heavily supported by higher metal prices that have resulted in mining stock heading the FTSE 100 index. But there is no sign of share price growth from BP (LON:BP) this morning as investors wait with caution to hear the outcome of today’s talks of potentially cutting second-quarter dividend to help pay the costs of the US oil spill.

Rob Hull
shareprices.com - Monday, June 14, 2010

Printable version email to a friend Subscribe to shareprices.com newsfeed
The mining sector is most accountable for today's gains on the FTSE

Mining stocks dominate the top-end of the UK’s blue-chip index this morning after metal prices grew and US and Asian markets rallied strongly in most recent sessions.

Silver miner Fresnillo (LON:FRES) is the top gainer so far this morning, up 38p or 3.77 per cent to a record high price of 1047p. The Mexican-based group’s price is the highest ever recorded by the group since it was first listed on the FTSE 100 in September 2008.

Other mining stock responsible for hauling the FTSE higher in this morning’s trading are Kazakhmys (LON:KAZ) which is posting gains in excess of three per cent and 36p just after 09:30BST and Anglo American (LON:AAL) which is 69p up to post a gain of more than 2.6 per cent.

Eurasian Natural Resources (LON:ENRC), Vedanta Resources (LON:VED), Rio Tinto (LON:RIO), Lonmin (LON:LMI) and Xstrata (LON:XTA) are all also over two per cent up.

As a direct result, the mining sector is the biggest gainer of the day so far, up over 2.3 per cent as a whole.

Also pushing into the FTSE 100 climbers this morning is Barclays (LON:BARC) after the bank announced it plans to launch a European “dark pool” trading platform – electronic platforms that allow buyers and sellers of large orders of shares to hide pre-trade information and intentions from the rest of the market.

Dark pools are considered popular after great success with the likes of Morgan Stanley and Credit Suisse but have been criticised for lacking transparency.

Barclays share price has gained from the news though, gaining over two per cent to make it the outstanding banking stock of Monday morning.

Another standout stock early on in today’s session is Whitbread (LON:WTB) which is gaining 40p and up 2.9 per cent after the group released information on a scheme to cut carbon emissions.

The Premier Inn owner’s scheme is an innovative food recycling programme that it will roll out at over 300 of its hotels and restraints in 2010.

At the opposite end of the FTSE index is BP. The under-fire oil giant has its board meeting today to discuss whether to cut or defer its second-quarter dividend payment to fund the Gulf of Mexico oil spill costs.

Analysts are strongly favouring BP to cut the dividend payment with the cost of the worst oil disaster in US history mounting each day.

BP shares are down 14p just before 10:00BST, a loss of 3.5 per cent.

BP is one of just eight groups in negative territory this morning at 10:00BST, meaning the FTSE 100 is up 0.74 per cent to 5202.07.

 

Latest News

Related News

FTSE 100 Latest

ValueChange
5,266.41136.87  % fall