FTSE extends gains despite miners' misery

Mon, 15th Apr 2013

The top share index in the UK moved upwards again on Thursday, tracking the rise in Wall Street despite a tumble in the mining sector. By the end of the penultimate session of the week, the FTSE 100 was higher by 0.45 per cent, closing at 6416.

After a rather wobbly start, the FTSE 100 recorded strong gains on Thursday, adding to the increases earlier in the week to register a total rise of 2.5 per cent since Monday. Much of this has been due to improved sentiment around China but also having an impact has been monetary easing steps taken in Japan plus anticipation of the earnings results due to be released from heavyweight firms. JP Morgan Chase and Wells Fargo are just two of the next firms due to unveil their results by the end of the week, both of which could help edge the market up or down.

Despite renewed optimism around China, the mining sector took a hefty tumble on Thursday, with Evraz plunging by a painful 11.40 per cent. The steel specialist was forced to swallow the losses after confirming it would be scrapping the final dividend for 2012 due to a hefty drop in earnings due to the price of metal falling.

Nearly the whole of the bottom 10 performers were from the same sector: ENRC, Randgold Resources, Fresnillo, Polymetal International, Antofagasta, Glencore and Anglo American, falling between 4.74 and 1.42 per cent. ENRC was under additional pressure with persistent rumours that its chief executive is about to walk out due to rows with fellow executives.

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