Strong metal prices push Randgold and Xstrata stocks up as Footsie rises

FTSE:6,051.03 (+53.65) Mid-250:11,797.08 (+130.55) Small Cap:3,031.39 (+27.97)

MINERS LIFTED Britain’s top share index higher yesterday, driven by record metal prices and results from Randgold.

The FTSE 100 closed 53.65 points, or 0.9 per cent firmer at 6,051.03.

“A fresh year high is being eyed with worries over the impact euro zone debt problems and the political troubles in the Middle East fading,” CMC Markets head of equities Jimmy Yates said.

“It will be interesting to see if traders have the mettle to see it through that level (6,090.49) and hold onto gains,” he said.

Nicole Elliott, a technical analyst at Mizuho Corporate Bank, said the index was not far short of substantial resistance levels, with January’s high at about 6,090 and the 2006 high of 6,137 both being watched.

Miners added most points to the index, lifted by record copper prices and boosted by upbeat corporate results.

Randgold Resources, up 2.6 per cent, posted a 43 per cent jump in profit and raised its dividend 18 per cent.

Xstrata, set to report today, gained 3.6 per cent, helped by bullish comment from Citigroup and Nomura.

Rio Tinto, which reports later in the week, moved up 2.9 per cent.

Energy stocks climbed as appetite for riskier assets strengthened among investors, with BG 0.8 per cent higher ahead of results today.

Can maker Rexam rose 3.4 per cent. The company has appointed Barclays Capital to sell its beverage and specialties arm in a deal that could be worth £200 million ($322 million), the Mail on Sunday reported.

ARM Holdings was the top blue-chip gainer, 3.9 per cent higher, as Numis raised the chip designer’s price target to 660p on promising long-term revenue drivers.

On the downside, BT shed 1.5 per cent as investors locked in profit following recent results.

Meanwhile, insurers Old Mutual and Resolution dipped 0.9 per cent and 1.6 per cent respectively on the back of recent strength.

The sector has been supported by bullish broker comment and persistent MA speculation.

Small-cap Lloyd’s of London insurer Chaucer said it had received takeover approaches from an unspecified number of suitors, lifting its shares 17 per cent. – (Reuters)