FTSE rises for a fourth day

Monday, 14 June 2010 11:32

By myfinances.co.uk staff

The FTSE 100 advanced 32.36 points, or 0.6 per cent, to 5,196.04 in early trading as higher metals prices boosted the earnings outlook for basic-resources companies.

The FTSE 100 remains 48% higher than in March 2009 amid signs the global economy is recovering. Still, the gauge has fallen 11% from this year's high on April 15th on concern that Europe's debt crisis will hurt the economic recovery and as BP lost more than a third of its value following an oil spill in the Gulf of Mexico.

BP lost 0.9 per cent to 388.5p before the oil company's board meets today to discuss whether to cut or defer its second-quarter dividend payment following the oil spill, the worst in US history.

BHP Billiton gained 2 per cent to 1,908p. Rio Tinto climbed 1.9 per cent to 3,274.5p. Xstrata advanced 2 per cent to 1,020p. Copper rose for a fifth day in London and lead, nickel tin and zinc climbed.

Weir gained 5.4 per cent to 1,002p. The company also said it agreed to buy the Linatex group of companies based in Kuala Lumpur for $200 million.

Majestic Wine advanced 5.7 per cent to 288p as the owner of the UK's largest chain of wine warehouses said full-year pre-tax profit more than doubled to £16 million ($23 million) in the year ended March 29th.

Lloyds Banking Group lost 0.9 per cent to 53.92p after Morgan Stanley downgraded the shares to "underweight" from "equal-weight," cutting its price estimate 23% to 50p per share.

Resolution shares were suspended at the request of the company. The UK buyout firm founded by Clive Cowdery said it plans to raise about £2 billion in a rights offering to help fund its purchase of Axa SA's UK life insurance operations. Resolution said it is in talks to buy the business for £2.75 billion. The company will also issue £500 million of deferred consideration notes to Axa.

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