WEDNESDAY MARKET CLOSE: Miners lead blue-chip stocks higher

Mining stocks were back in favour thanks to upbeat analyst commentary and encouraging economic data out of China.

Rio Tinto added 97 pr 4 per cent to close at 2,567.5p. Picture: AP

With latest figures showing a slowdown in the sector in the UK, the Chinese services sector expanded at its fastest pace in almost a year, providing a sharp contrast to a recent weak reading for manufacturing.

Rio Tinto led the charge among the miners, adding 97 pr 4 per cent to close at 2,567.5p. Rival BHP Billiton gained 41.5p to 1,200.5p – an increase of 3.6 per cent – while Antofagasta rose 16.5p to 591p.

The rally helped the FTSE 100 Index climb 65.84 points to finish the session at 6,752.41.

IG market analyst Joshua Mahony said: “Markets turn to ‘Super Thursday’ where the reduction in BoE meetings means the delivery of a rate decision, statement, minutes, Q&A session, and the inflation report, all rolled into one afternoon.”

Away from the miners, Legal & General was another strong performer as it batted off the impact of recent pension reforms to post a boost in half-year profits. Shares in the insurer closed 7.3p or 2.8 per cent higher at 270.7p.

Sausage skin maker Devro put in a sizzling performance, jumping 21.25p or 7.1 per cent to 320p after reporting a sharp increase in half-year profits as its bottom line was lifted by a reduction in charges linked to job cuts at its Scottish plants.

Royal Bank of Scotland was also in demand, rising 7.7p or 2.3 per cent to 346.7p, prompting further criticism that the taxpayer has been short-changed after making a £1 billion loss on the UK government’s sale of a 5.4 per cent stake in the lender.

Analysts at Numis said the sale at 330p a share “achieved a new 2015 low and arguably sold the taxpayer short”.

The biggest top-flight faller was builders’ merchant Travis Perkins, down 57p at 2,160p.