Miners continue to ride commodities wave, stocks broadly higher

Reacting to signs of stronger demand for commodities in China prices for metals rose, prompting investors to buy into mining stocks. The sector is responsible for a big part of the FTSE's gains today. Steadily continuing this morning's climb the FTSE traded at 5,317 by 12:55 BST, up 41 points or 0.8 per cent.

Chris Bradshaw
shareprices.com - Tuesday, August 17, 2010

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With the exception of BHP Billiton levels of attraction to mining stocks surged today. Lonmin, Eurasian Natural Resources, Xstrata and Vedanta Resources all gained over 3 per cent in morning trading, with Lonmin in the lead – up 3.75 per cent or 56 points.

Energy stocks diverged, with Royal Dutch Shell and BG Group climbing by 1.2 per cent and 0.9 per cent respectively. BP shares are in decline, down 0.66 per cent in an otherwise upbeat market as technical issues in the final plans to seal the Gulf of Mexico leak delayed operations. Cairn Energy stepped back by 1.3 per cent in morning trading.

Travel firms are also having a good day as the industrial action planned for the Bank Holiday weekend is averted. BA's ground staff will no longer be striking which helped the stock gain 1.8 per cent. TUI Travel and Thomas Cook gained 2.3 per cent and 2.7 per cent.

Mid-cap stocks are performing even better, the midcap FTSE 250 index stood at 9,854 by 12:55, a gain of 0.8 per cent through the morning. Consumer products manufacturer McBride is up by 6.8 per cent while EnQuest and Petropavlovsk are also on the commodities wave, up 6.8 per cent and 5 per cent respectively.

 

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