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FTSE stages mini-bounce as battered mining stocks rally
January 26, 2016 / 10:31 AM / 2 years ago

FTSE stages mini-bounce as battered mining stocks rally

LONDON (Reuters) - Britain’s leading share index ended higher on Tuesday, lifted by an oil-price rise a knock-on rally in battered mining stocks.

People walk through the lobby of the London Stock Exchange in London, Britain November 30, 2015. REUTERS/Suzanne Plunkett - RTX1WIIH

The blue-chip FTSE 100 .FTSE recovered from and early decline to finish 0.6 percent up at 5,911.46 points, although the index remains down 5 percent since the start of 2016.

Concerns about a slowdown in China, the world’s No. 2 economy and a major consumer of oil and metals, have hit world stock markets this year, sending the FTSE 350 Mining Index .FTNMX1770 down 10 percent.

However, the prospect that major producers may be edging closer to a deal to tackle one of the biggest oil supply gluts for decades [O/R] lifted the shares of energy companies such as BP (BP.L) and Royal Dutch Shell (RDSa.L).

    Mining stocks also surged, with Anglo American (AAL.L) rising 11.8 percent on the back of higher diamond sales at its De Beers division, and firmer copper prices also lent support. [MET/L]

    MB Capital director Marcus Bullus said his outlook was positive because outside the volatile commodities sector there were solid results, such as higher profits at housebuilder Crest Nicholson (CRST.L).

    “I’d be looking to go with the upside momentum but maybe with a stop/loss at 5,640 points if the FTSE started to fall back down again,” he said.

    The FTSE remains nearly 20 percent below a record high of 7,122.74 points hit in April 2015.

    Additional reporting by Kit Rees; Editing by Louise Ireland

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