Footsie gains on back of factory data

Market report Perry Gourley

The FTSE 100 made modest gains after figures showing output in Britain’s manufacturing industry unexpectedly pushed to a four-month high in August thanks to a jump in new work.

The closely-watched Markit/cips UK Manufacturing purchasing managers’ index (PMI) showed a reading of 56.9 last month, up from 55.3 in July and above economists’ expectations of 55.

The FTSE 100 closed up 7.88 points at 7,438.5 and the bright update for the UK economy also gave a momentary boost to the pound, which edged into positive territory against the US dollar before slipping back to 1.292.

Mining companies were in demand after a survey of Chinese manufacturing came in above expectations. Uk-listed firms which benefitted included Vedanta Resources ,up25pat

87p, Antofagasta, up 23p at 1,058p, and Glencore, up 7.5p at 367p. Shares in upmarket cinema chain Everyman rose after it swung into profit in the first half of the year as the group signalled plans for further expansion.

The group, which has 21 cinemas, saw revenue rise 55 per cent to £18.8 million in the six months to 29 June, while profit came in at a modest £438,000, an improvement on the £670,000 loss suffered in the same period last year. Shares rose by 7.5p to 165p.

Shares in pharmaceuticals group Indivior tumbled after the firm lost a patent case in the US that could enable rivals to better compete.

The FTSE 250 firm, which specialises in drug addiction treatment, saw shares end 35.7 per cent lower, or 149p, at 267.6p.