FTSE: 5,997.38 (+14.04) Mid-250: 11,666.53 (+90.70) Small Cap: 3,273.42 (+3.61):STRENGTH FROM financial stocks and miners lifted Britain's top share index by yesterday's close, as investors stayed relatively optimistic and focused on the positive aspects of mixed US employment data.
However, weakness from energy stocks Royal Dutch Shell and Cairn Energy ensured gains were muted.
The FTSE 100 ended 14.04 points or 0.2 per cent higher at 5,997.38.
Investors shrugged off data that showed US employment rose by a meagre 36,000 jobs in January, far less than expected.
Instead, they took comfort from the fact that the unemployment rate fell to its lowest level since April 2009, while strong
“The (payrolls) figures were all over the place and January’s not a good month,” Steven Bell, director at hedge fund GLC, said.
Old Mutual led the blue-chip risers up 5 per cent, with sentiment on the insurance sector lifted by analysts pointing to a better outlook for dividends.
Banks were mostly higher as investors stayed positive on the risk sensitive sector, with Barclays the best performer, up 2.4 per cent.
Miners rallied, bolstered as copper soared beyond $10,000 per tonne. Anglo American added 2.9 per cent.
However, other moves in commodity prices depressed the index.
Royal Dutch Shell led energy stocks lower, off 2.1 per cent, with crude knocked on speculation that Egypt’s President Hosni Mubarak was about to step down, a development which would ease Middle East tension.
Oil explorer Cairn Energy fell on fears about the progress of the sale of a majority stake in its local unit, Cairn India, to Vedanta Resources. Water companies Severn Trent and United Utilities were among the top blue-chip gainers, up 3.6 and 4.3 per cent, respectively, as BofA Merrill Lynch upgraded both firms to “buy” from “neutral” in a sector review.
Morrison Supermarkets rose 2.8 per cent after both UBS and Bernstein Research upgraded ratings for Britain’s fourth-biggest grocer.
Travel-related firms continued to feel the pinch from the political unrest in Egypt.
TUI Travel lost 0.8 per cent, also hit by a Nomura downgrade to “neutral” from “buy” in a leisure sector review. – (Reuters)