FTSE largely unchanged in early trading

Monday, 08 March 2010 10:35

By myfinances.co.uk staff

The FTSE 100 increased 0.2 per cent to 5,608.75 in early trading leaving stocks largely unchanged as gains by mining companies offset declines among drugmakers.

The index has rallied 11% since February 5th as UK companies including Barclays and Royal Bank of Scotland Group (RBS) reported earnings that beat analysts' estimates and as investors speculated that the European Union will assist Greece with its finances if required.

BHP Billiton, the world's largest mining company, climbed 1.2 per cent to 2,234p while Rio Tinto, the world's third-largest mining company, increased 1.2 per cent to 3,746.5p after the price of copper rose for a second day as the weaker dollar and signs of improvement in the US economy increased investor demand for commodities. Aluminum, zinc, lead, nickel and tin also gained.

RBS added 1.7 per cent to 40.67p as the lender said it is in talks with a Chinese company to form an investment banking joint venture in the world's fastest-growing major economy.

AstraZeneca dropped 1.4 per rcent to 2,954.5p after it said its experimental Recentin medicine failed to equal Roche's Avastin in tests for use as a first-line treatment against colon cancer. GlaxoSmithKline, the UK's biggest drugmaker, also slipped 1.1 per cent to 1,225.5p.

Prudential climbed 1.8 per cent to 539.5p. The insurer that plans to buy an American International Group's Asian unit for $35.5 billion said it will "accelerate" plans to list in Hong Kong before holding a record $20 billion rights offer that will help finance the deal.

Petrofac advanced 2.3 per cent to 1,097p. The UK oil-services provider said full-year net income rose to $353.6 million from $265 million in 2008 as orders for oil and gas engineering projects increased.

Liberty International fell 1.3 per cent to 506.5p. The UK real-estate investment trust may announce plans to raise cash in a rights offer this week, its third in two years, the Independent on Sunday reported.

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