Monday market close: Mining shares drive Footsie higher

The London market closed up buoyed by mining stocks, allowing the top flight to bounce back from a sharp decline in the previous session.
The FTSE was boosted by mining stocksThe FTSE was boosted by mining stocks
The FTSE was boosted by mining stocks

However, the market did surrender some of the gains made during the session, after opening more than 50 points higher.

Analysts said disappointing German production data and continuing uncertainty over Greece’s forthcoming election tempered the brighter mood earlier.

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The rise comes after a fall of more than 150 points for the FTSE 100 on Friday after US jobs figures left traders anxious about the lingering possibility of an interest rate hike by the Federal Reserve later this month. The US market was closed for the Labour Day holiday.

Despite the rise, David Madden, market analyst at IG, said the overall sentiment was still sceptical.

“Traders know all too well that there are bargains to be had in the market, but we have seen so many painful sell-offs recently that it will take a lot to talk traders into buying mode again,” he said.

On the London market, commodities giant Glencore was a strong riser, jumping 7 per cent, or 8.7p, to 131.8p after it announced a $10 billion debt reduction programme.

Shares in other miners – which have been hard hit by the turbulence in China – also rose, with Antofagasta up 42.5p to 607p, Fresnillo ahead by 6.5p to 602.5p, and Anglo American 9.2p higher to 677.7p.

Shares in supermarket group Tesco were unchanged at 186p after it said it had agreed to sell its South Korean business Homeplus in a £4.2 billion deal as it seeks to strengthen its balance sheet. Primark owner Associated British Foods said the Silver Spoon-to-Twinings group expects its full-year profit to be impacted by lower sugar prices and a strong pound.

It said like-for-like sales at Primark slowed to 1 per cent in the 52 weeks to 12 September, from 4 per cent a year ago, hit by an unseasonably warm autumn and a cool spring. Shares fell 26p to 3,113p.

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