Advertisement
UK markets close in 27 minutes
  • FTSE 100

    8,307.97
    +94.48 (+1.15%)
     
  • FTSE 250

    20,374.10
    +209.56 (+1.04%)
     
  • AIM

    775.72
    +4.19 (+0.54%)
     
  • GBP/EUR

    1.1645
    -0.0015 (-0.13%)
     
  • GBP/USD

    1.2551
    -0.0013 (-0.10%)
     
  • Bitcoin GBP

    51,118.04
    +858.55 (+1.71%)
     
  • CMC Crypto 200

    1,315.40
    -49.73 (-3.64%)
     
  • S&P 500

    5,195.04
    +14.30 (+0.28%)
     
  • DOW

    38,957.63
    +105.36 (+0.27%)
     
  • CRUDE OIL

    78.05
    -0.43 (-0.55%)
     
  • GOLD FUTURES

    2,327.90
    -3.30 (-0.14%)
     
  • NIKKEI 225

    38,835.10
    +599.03 (+1.57%)
     
  • HANG SENG

    18,479.37
    -98.93 (-0.53%)
     
  • DAX

    18,403.32
    +228.11 (+1.26%)
     
  • CAC 40

    8,067.51
    +70.87 (+0.89%)
     

Miners help Britain's FTSE share index to advance

* FTSE 100 up 0.4 percent after falling in 4 sessions

* Miners feature among top sectoral gainers

* ARM rises after U.S. led tech fall last week

* Kingfisher (LSE: KGF.L - news) gains after Mr Bricolage deal collapse

By Atul Prakash

LONDON, March 30 (Reuters) - Britain's top share index rose on Monday, recovering after a steep weekly drop, helped by a rally in miners on expectations of more infrastructure spending and policy stimulus in China, the world's biggest metals consumer.

The UK mining index, up 1 percent, was the top sectoral gainer, with shares in Rio Tinto (Xetra: 855018 - news) , Antofagasta (LSE: ANTO.L - news) and Anglo American (LSE: AAL.L - news) rising 0.8 to 3.3 percent.

ADVERTISEMENT

"Clearly sentiment has improved on expectations of some further Chinese support. More stimulus means hopefully more industrial production and more demand for metals," said Edmund Shing, global equity fund manager at BCS Asset Management.

Over the weekend, China unveiled details of its blueprint for a modern Silk Road to improve links from Asia to Europe and Africa, an initiative that could translate into a new wave of investment. Comments from People's Bank of China Governor Zhou Xiaochuan added to hopes of more easing.

Among other sharp movers, Kingfisher rose 2.1 percent after Europe's largest home improvement retailer said its proposed 275 million euro ($298 million) purchase of smaller French rival Mr Bricolage had collapsed.

The blue-chip FTSE 100 index was up 0.4 percent at 6,883.92 points by 1424 GMT, after dropping 2.4 percent last week. The index rose towards a record high of 7,065.08 set on Tuesday, although remained about 2 percent away from that level.

Despite its return to all-time highs, the British blue-chip index has underperformed euro zone shares since the euro zone crisis peaked in the summer of 2012.

A general election on May 7, the outcome of which is still deeply uncertain, has many investors betting that this underperformance could continue.

"On the positive side UK relative valuations have improved substantially following the 30 percent underperformance versus euro zone. However, the May elections could be quite messy; we prefer to stay (underweight) into that event risk," equity strategists at JP Morgan said in a note.

Shares (Berlin: DI6.BE - news) in ARM rose 1.5 percent, recovering after dropping 10 percent in two days last week. It gained following a rebound in semiconductor stocks in U.S. trade on Friday after a report that Intel (Swiss: INTC.SW - news) was in talks to buy rival Altera Corp (NasdaqGS: ALTR - news) .

"The sector is still fairly solid. It obviously had a pull-back over the last week or so ... but the trend remains fairly bullish across the board," said Manoj Ladwa, head of trading at TJM Partners. (Additional reporting by Alistair Smout; Editing by Catherine Evans)