June 11, 2019 / 7:46 AM / 6 months ago

Miners lift FTSE 100, Ted Baker slumps on profit alert

(Reuters) - Mining stocks led London’s main index higher on Tuesday after Beijing took steps to increase local government spending and boost China’s economy, while fashion retailer Ted Baker slumped after a profit warning.

FILE PHOTO: Traders look at financial information on computer screens on the IG Index trading floor in London, Britain February 6, 2018. REUTERS/Simon Dawson

Rio Tinto, Antofagasta, Glencore and BHP were 2.5-3% higher, while oil majors BP and Shell were lifted by a rise in crude oil prices on expectations that OPEC and its allies will keep withholding supply. [O/R]

Troubles on Britain’s high street were reflected on the small- and mid-cap indexes, with Ted Baker falling nearly one-third to a 6-1/2 year low after warning profits would come in well below analysts’ expectations, and fast-fashion retailer Quiz down 23.2% after reporting a 94% slump in underlying pretax profit.

The FTSE 100 index, buoyed in the past week by hopes of more monetary and fiscal stimulus globally, rose 0.3% to its highest in nearly six weeks, gaining for the seventh straight session. The midcap index was up 0.1%.

Safety equipment maker Halma topped the FTSE 100 leaderboard with a 4.1% gain after reporting a surge in earnings, driven by strong demand in the United States, its largest market.

The main index is on course for its biggest monthly gain since January, recovering from its only monthly fall this year in May when an escalation in Sino-U.S. trade tensions dampened investor sentiment.

The mining index jumped 2.3%, its biggest one-day rise in a month, as copper prices gained on hopes that China, the biggest consumer, will pump money into metals-intensive infrastructure building.

Among midcaps, shares in the listed fund run by money manger Neil Woodford, Woodford Patient Capital Trust, broke a seven-day losing streak to rise 7.5% on their best day in over a year.

Gains come a day after the company sought to reassure investors that the fallout from the suspension of Woodford’s flagship equity fund had not affected its “operational performance”.

Support services group Stobart climbed to a session high after saying that a court of appeal denied former CEO Andrew Tinkler’s application to challenge parts of an earlier ruling which was in favour of the company. Shares ended 3% higher.

AIM-listed Video advertising company Taptica tanked 40% to a 3-year low after it said Uber Technologies has alleged “fraudulent concealment, negligence and unfair competition” against the company in a complaint filed in a U.S. court.

Reporting by Muvija M in Bengaluru; editing by Patrick Graham; Editing by Kirsten Donovan and Ed Osmond

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