Glencore debut dominates markets

ENERGY and banking stocks propelled the FTSE 100 higher yesterday as commodities trading giant Glencore made its London Stock Exchange debut.

Glencore closed at about 530p, the same level at which it had entered the market, having hit an intra-day high of 553.17p.

The commodities giant joins the FTSE 100 on Tuesday, with analysts tipping either asset manager Investec or technology and engineering group Invensys for demotion to make way. The name of the relegated firm will be announced today.

The Footsie closed 32.5 points, or 0.6 per cent, higher at 5,955.99 but off its session high of 6,003.92, and having advanced 1.1 per cent on Wednesday to end a five-session losing streak.

Jimmy Yates, head of equities at CMC Markets, said: "The index found support around the 50-day moving average of 5,928, but concerns over European debt, Middle East unrest and commodity demand from emerging markets will stunt progress."

A rebound in metal prices, after three days of declines, saw platinum miner Lonmin add 23p to 1,538p while Eurasian Natural Resources lifted 4.5p to end the day at 845.5p.

Energy firms were lifted by stronger oil prices, with Brent crude holding at $111 per barrel, as Petrofac added 57p to 1,528p, BG Group was up 15p at 1,388p and BP lifted nearly 2 per cent or 6.9p at 447.9p.

Edinburgh-based oil and gas explorer Cairn Energy edged up 2.8p to 432.7p after it again shifted the deadline for the sale of its Indian subsidiary to mining giant Vedanta, which was down 1.1 per cent or 24p at 2,111p.

The retail sector was given a lift after figures showed the royal wedding and warm weather in April triggered a 1.1 per cent surge in volumes. High street giant Marks & Spencer was up 6.8p at 399.9p, B&Q-parent Kingfisher was ahead 6p at 285p and clothing retailer Next added 26p at 2,268p.

Invensys was near the top of the fallers' board after saying its order book had fallen 1 per cent due to fewer large orders at its rail business.

Shares fell nearly 3 per cent or 9.6p to 299.8p.

Investec headed in the opposite direction, up 25.1p or 5.4 per cent at 487p, after unveiling a rise in full-year operating profits.

Outside the top flight telecoms firm TalkTalk made headway, rising nearly 7 per cent or 8.6p to 140.1p, after it reported a rise in full-year profits to 57 million, from 11m a year earlier.Among the Scottish stocks, Stagecoach was flat at 239.7p despite the Perth-based bus and train operator revealing that its Virgin Trains joint venture had been invited by the UK government to discuss extending its west coast rail franchise.

Dundee-based medical testing kit maker Axis-Shield was up 1.5 per cent or 5p at 335p after reporting a "more normal" flu season, following the previous winter's quiet spell, which had dented sales.

In currency news, the dollar dropped to $1.61 against the pound, weakened by the Philadelphia Fed Index, which measures changes in business growth and which gave a weaker-than-expected reading for May.

Sterling was also up against the euro at €1.13 as fears over Greece's debt crisis continued to trouble traders.