Miners digging out a positive return

Buoyant mining stocks helped London's top share index edge higher yesterday, countering slippage by most banks on continuing eurozone debt concerns.

At the close of play, the blue-chip FTSE 100 index was up almost 11 points or just under 0.2 per cent at 5,880.99, a similar gain to the previous session but well below a morning spike above the psychologically important 5,900 level at 5,910.77.

The UK benchmark index was also not derailed by a 0.3 per cent fall in the Dow Jones Industrial Average in early trading after the world's biggest economy received disappointing news about unemployment and the pace of its recovery.

Manoj Ladwa, senior Trader at ETX Capital, said: "The FTSE has stubbornly managed to keep its head above water and close in positive territory despite increased selling pressure in the US.

"But weak GDP figures and a rise in jobless claimants are unlikely to instil much confidence in traders especially as we go into a long weekend both in the UK and US."

Mining and energy companies defied a slight dip in some commodity prices to post gains. Copper giant Antofagasta was among the top risers, up 42p to 1,258p, after a 29 per cent rise in first-quarter revenues, while platinum producer Lonmin cheered 38p to 1,534p.

Fairfax analysts said in a note: "We believe that mining equities are now set to make good gains as index money replaces speculative capital in Glencore (the newly-floated commodities trader] and as short positions used to help fund the IPO are unwound."

Glasgow-based engineering firm Weir was the top riser after it lifted 5 per cent or 100p to 1,984p following a positive broker note.

Man Group, the world's largest listed hedge fund by market value, was another leading gainer after annual pre-tax profits of $599 million (367m) came in higher than forecasts of $560m made by the company in March. Shares were up more than 2 per cent or 5.9p at 245p.

Meanwhile, Lloyds Banking Group shares received a boost after a report said Virgin Money was planning to put in a bid for its 600 available branches as early as next month.

Lloyds was up 0.6p at 51.3p, but elsewhere in the sector Barclays was down 0.5p at 271.3p and Royal Bank of Scotland dropped 0.4p to 40.9p.

Fashion house Burberry was the top faller in the top flight as its stellar annual results were overshadowed by a bout of profit-taking.

The chain reported a 39 per cent increase in underlying pre-tax profits to 298m, in line with City expectations, but shares dropped 60p to 1,260p after some investors cashed-in on its recent hot run of form.

In other corporate results, United Utilities rose 5p to 622p after it defied the winter weather to meet its leakage target for the last financial year.Operating profits from its water arm were down 17 per cent however, caused by lower prices imposed by regulator Ofwat.

Outside the top flight, defence products firm Qinetiq dipped 2.4p to 115.4p despite it returning to profit at a statutory level and noting that a strong performance in its products division offset tough trading in UK and US services.