Commodity-based shares gain on stronger metal and oil prices

FTSE:5,955.99 (+32.50) Mid-250:11,986.54 (+99.00) Small Cap:3,266.12 (+6.73)

THE LONDON market shrugged off mixed data from the US yesterday as firmer metal and oil prices helped commodity-based stocks make headway.

While the top flight was off highs for the session, the FTSE 100 index still closed up 32.5 points at 5,956, having broken a five-day losing streak on Wednesday.

Trader confidence was knocked after a key economic indicator in the US, the Philadelphia Fed Index, which measures changes in business growth, gave a weaker-than-expected reading for May.

The London market pressed ahead after a strong run for miners and upbeat retail figures for April, although commodities giant Glencore’s market debut fell flat after a promising start.

Glencore’s shares were priced at 530p, giving it a market value of more than £36 billion, in London’s biggest stock market listing.

There were hopeful signs as the newcomer raced on to 548p but the first session of conditional trading finished with the company flat on its opening price. Retail investors will have to wait until Tuesday to buy the shares, when the stock is also expected to be fast-tracked into the FTSE 100 index.

A rebound in metal prices, after three days of declines, saw platinum miner Lonmin add 23p to 1538p and Eurasian Natural Resources lift 4.5p at 845.5p.

Energy firms were lifted by stronger oil prices. Petrofac added 57p to 1528p, BG Group was up 15p at 1,388p, and BP lifted nearly 2 per cent or 6.9p at 447.9p.

The retail sector was given a lift after figures showed the royal wedding and warm weather in April triggered a 1.1 per cent surge in volumes.

High street giant Marks & Spencer was up 6.8p at 399.9p, BQ parent Kingfisher was ahead 6p at 285p, and clothing retailer Next added 26p at 2268p.

Invensys was near the top of the fallers’ board after the technology and engineering group said its order book had fallen 1 per cent due to fewer large orders at its rail business. Shares fell nearly 3 per cent or 9.6p to 299.8p.

The biggest Footsie risers were Investec up 25.1p at 487p, ITV ahead 2.7p at 69.7p, Petrofac up 57p at 1528p, and Aggreko ahead 58p at 1773p.

The biggest Footsie fallers were ICAP down 15.2p at 473.7p, Invensys off 9.6p, Essar Energy down 10.6p at 427.9p, and Intertek off 47p at 1950p. – (PA)