FTSE continues to rally at start of week

Monday, 16 November 2009 10:26

The FTSE 100 share index soared to a 14-month high early this morning rising at the start of the week for a fifth consecutive session.

The FTSE rose 1.1%, or 60.21 points, to 5356.59 led by mining and energy stocks as growing confidence boosted demand for commodities.

Overall the FTSE 100 rose 2.9% last week and has rebounded 53% since hitting a six-year low back in March.

Miners have been the biggest winners. The mining sector posted gains across the board on the back of broadly firmer metal prices led by gold, which recorded new historical highs as investors sought sanctuary in the commodity away from the US dollar

At 10.15am Lonmin topped the index leader board, up 125p to 1717p, or 7.85%, as the world's third biggest platinum producer said it planned to boost output by a fifth by 2013 as prices climb on shortages and after it had earlier posted a swing to an annual loss on weak prices and lower output.

Meanwhile, Randgold Resources rose 254p, or 5.4%, to 4961p, Rio Tinto rose 156p, or 4.98%, to 3289.00p and Xstrata was up 55p, or 5.42% to 1069p.

Banking gains were underpinned by a 1.1% rise in Europe's biggest bank HSBC, as investors bought into the risk sensitive sector.

Standard Chartered was up 1.2%, while Barclays added 0.3%.

But Lloyds Banking Group dipped 0.9% after newspaper reports said the state-backed bank has been forced to wipe off up to £600m of pub chain Admiral Taverns's debt.

• Tags:
• news
,
• share prices