Miners climb highest in FTSE 14-day winning run

THE FTSE 100 finished the week on a new high, having now climbed for 14 sessions in a row.

The stock market has been on an upward trajectory since December 22, a record-breaking run.

Yesterday it gained another 0.6pc, or 45.4 points, to 7337.8.

But not all stocks in the market have had such a stellar run over the past three weeks – there have been some clear winners and losers.

Among those winners have been the commodities and mining firms. The slide in sterling has provided a boost to the assets and profits of firms with overseas earnings, and this sector has had an added enhancement from a well-timed recovery in metal and oil prices.

Fresnillo has been the greatest gainer over the period, gaining almost 30pc, or 322p, since its closing price before the run began, to finish at 1413p yesterday.

Randgold Resources has climbed 16pc, or 1075p, to 6710p over the past three weeks while Anglo

American has advanced 17pc, or 194.5p, to 1329.5p in that time.

Also among the top risers are housebuilders Persimmon ( up around 15pc to 1997p) and Taylor

Wimpey (up 12pc to 172.6p) which have had a welcome bounce-back since their share price collapsed after the Brexit vote.

Russ Mould, investment director at AJ Bell, said: ‘The fact that UKfocused businesses appear in the list of top performers suggests investors are feeling more confident about the economy.

‘In the wake of the EU referendum, Italian referendum and US election there has been less talk about austerity and more about infrastructure spending and economic stimulus, which is good news for these cyclical, turnaround stocks.’

The other end of the table is largely dominated by retailers which, despite a festive sales flurry, are still battling the long-term issues of inflation and losing market share to online and discount rivals.

Next shares have plunged 18.5pc, or 921p, to 4042p since the FTSE started its record-breaking climb. Also among the bottom of the pack are Primark- owner Associated

British Foods and Marks & Spencer (both down around 4pc to 2580p and 339.1p respectively).

Yesterday, though, investor attentions were on the building merchants. SIG soared as it reported full-year sales were up 11.2pc to £2.7bn. Exchange rates, acquisitions and a greater number of working days all contributed to a strong year for the insulation and roofing specialist. SIG said pre-tax profit would be in the £75m to £80m range as forecast, although its gross margin was down.

Sales climbed 1.1pc in the UK and Ireland but slipped in France and Germany. The firm said it would prioritise reducing its debt.

Despite strong sales, chief executive Mel Ewell said it had been a disappointing year for the firm, with the UK particularly challenging. He said: ‘Our transformation change programme, although taking the group in the right strategic

direction, distracted us somewhat from our customers.’

Shares yesterday rose 16.1pc, or 15.1p, to 108.9p.

Grafton Group gained as it revealed revenue was up by 13.4pc to £2.5bn for the year.

Merchanting, which accounts for 92pc of revenue, benefited from the opening of seven Selco branches while a restructuring plan and acquisitions provided a further boost. Liberum, which has a ‘hold’ rating on the stock, said sales growth was encouraging but it expects more challenges to the sector. The broker prefers rivals Howden and Travis Perkins.

Grafton shares surged 8.4pc, or 45.5p, to 586p. Brickmaker Forterra also reported strong sales.

The masonry firm, which floated in April, said it had seen good levels of activity from the major housebuilders in the final two months of the year. Brick sales volumes were up on the previous year and operating profit is set to be in line with expectations. Numis rates the stock a ‘buy’ but has forecast flat revenue and earnings for the year. Shares were flat at 180p.