Footsie hits a record high as miners surge

Market report Perry Gourley

London’s benchmark share index closed at an all-time high as the traditional Santa rally boosted leading UK stocks.

The FTSE 100 leapt 37.91 points or 0.5 per cent to 7,106.08 after the mining giants put in a strong performance in the first trading session since the Christmas break.

Despite the thin trading volumes, the London market broke above its previous closing high of 7,103.98 set on 27 April last year.

Mining giants Anglo American and Rio Tinto played their parts in pushing the market higher after both rising more than 3 per cent.

However, it was the precious metal stocks Fresnillo and Randgold Resources which emerged as the biggest risers on the London market, soaring 5 per cent and 4 per cent respectively.

Commodities were helped further by a hike in the cost of crude as benchmark Brent lifted 0.6 per cent to $56.41 a barrel.

But airlines and banks missed out on the festive rally, while a profit warning from Bovis Homes saw the housebuilder suffer share losses in the FTSE 250.

David Cheetham, market analyst at online trading group XTB, said: “Observers of the markets have for many years noticed a strong propensity for stocks to rise in the period between Christmas and the

New Year and this phenomenon appears to be playing out once more.”

British Airways owner International Consolidated Airlines was seeing contrasting fortunes, down nearly 3 per cent, followed close behind by low-cost rival Easyjet, off 2 per cent. Shares in the online fashion retailer was in demand after agreeing to buy the assets of failed US brand Nasty Gal for $20 million. The housebuilder came under pressure after it issued a downbeat trading update and lower than expected mortgage approval figures.