Market boosted by falling crude price but big falls in miners limit gains

FTSE: 5,974.76 (+0.98) Mid 250: 11,743.52 (-4.35) Small Cap: 3,276.13 (+1.52)FALLING OIL prices offered support for the FTSE 100 index yesterday but hefty declines among miners limited gains in the top tier.

The top flight index closed one point higher at 5974.8 after a strong session on Wall Street inspired a fightback from losses of more than 50 points at one stage.

The Dow Jones Industrial Average rose around 1 per cent amid relief over oil prices which fell on hopes that Opec members will boost production.

Among stocks in London, falling gold prices and disappointing full-year results from miner Antofagasta sent shares down across the heavily-weighted sector. Antofagasta sank 3 per cent or 38p to 1382p in spite of a 57.5 per cent increase in net earnings to $1.1 billion.

Analysts said the results were at the lower end of expectations and other miners followed its decline. Kazakhmys was down 42p at 1406p, while Fresnillo was off 31p at 1602p.

Softer gold prices sent Randgold Resources to the top of the fallers’ board, losing 400p at 4480p, while African Barrick Gold was not far behind, down 20.5p at 547.5p.

Elsewhere on the fallers’ board, pumps and valves maker Weir fell despite posting a 58 per cent jump in full-year profits and expressing confidence in 2011 prospects. The volatile oil price hit the firm which supplies its products to a range of energy giants, while a rise in net debt also meant shares fell 5 per cent or 84p to 1695p.

Some support was given from well-received full-year results from Old Mutual, which sent the South African financial services firm to the top of the risers’ board with a gain of 4.4p to 137.7p.

It was joined on the way up by BT Group and Vodafone, ahead 7.3p to 191.1p and 3.15p to 181.85p respectively, after Morgan Stanley upgraded its recommendation on the European telecoms sector.

Outside the top flight, shares in set-top box maker Pace dived after its chief executive warned a major order from a US customer had been pushed back. Shares were 20 per cent lower, down 44.1p at 176.4p.

However, shares in film studios Pinewood Shepperton surged more than 4 per cent after it posted a 31 per cent increase in pre-tax profits to £5.8 million in the year to December 31st and an 8 per cent increase in revenues to £43.4 million, Shares were 6.4p higher at 153p . – (PA)