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Miners help to drive FTSE 100 higher

02 October 2017 17:03

There was plenty of news to excite investors at the start of the week, including the potential for airlines to benefit from the woes of Monarch and the boost for the housebuilding sector from the extension of Help to Buy.

Miners were also among the drivers of the FTSE 100's impressive 0.9% rally to 7,438.

Shares in Anglo American (AAL) and Rio Tinto (RIO) rose 2.4% and 1.4% to £13.71 and £35.23.

Brent crude oil declined 1.9% to $55.70 per barrel. Gold fell 0.6% to $1,273 per ounce and copper slipped 0.3% to $2.93 per pound.

MONARCH TROUBLES SET TO HELP RIVALS

Airlines were flying higher following the downfall of Monarch, which entered administration as higher costs, terrorism attacks and intense competition took its toll.

British Airways operator International Consolidated Airlines (IAG) rose 2.2% to 606.4p. Budget airlines easyJet (EZH) and Ryanair (RYA) gained 3.6% to £12.61 and 3.3% to €16.81 despite mass cancellations from the latter over the last few weeks.

HELP TO BUY NEWS BOOSTS HOUSEBUILDERS

News over the weekend that the Help to Buy scheme would be extended by £10bn strengthened housebuilders, with Barratt Developments (BDEV) receiving the biggest boost, up 3.8%.

Persimmon (PSN) and Taylor Wimpey (TW.) chased the stock higher, jumping 3.7% and 1.9%, respectively.

OVERSEAS MARKETS

Investor sentiment was strong on the first trading day of the final quarter of 2017, helping all US indexes hit record highs.

The market was also optimistic that President Donald Trump would start making progress on tax reform. On Monday, the Nasdaq opened 0.3% higher at 6,518.

MID AND LARGE CAPS RISERS AND FALLERS

Shares in addiction treatment specialist Indivior (INDV) were up 1% at 343.2p on a new drug application submission in the US for schizophrenia treatment.

Insurance business Hiscox (HSX) nudged 1.3% higher to £12.97 after announcing net claims from Hurricanes Harvey and Irma of $225m based on an insured market loss of $35bn.

Investors were cautious on the latest news from Kaz Minerals (KAZ) as the stock was broadly unmoved at 776p. The copper miner said its Aktogay sulphide plant had been declared commercial and associated sales, operating costs and interest expenses will be recorded in its income statement from this month.

SMALL CAP RISERS AND FALLERS

Travel retailer On The Beach (OTB) flagged a one-off exceptional cash cost associated with helping customers organise alternative travel arrangement or providing refunds, but remained stable at 401.2p.

Jet2 owner Dart Group (DTG) was the biggest riser among the small cap airlines following Monarch's announcement, up 7.5% to 576.9p.

Newspaper publisher Daily Mail and General Trust (DMGT) fell 2% to 635.2p after warning that adjusted pre-tax profit would be at the lower end of forecasts.

Progress on fuel cell developer AFC Energy's (AFC) commercialisation plan excited the market, triggering a 30% rally in the share price to 13.9p.

Asset write-downs and tough trading was a toxic combination for Stanley Gibbons (SGI). Shares in the stamp dealer plummeted 17.7% to 7.7p as its losses deepened and the company explored its options.

Story provided by StockMarketWire.com

Related Company: IAG

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