Miners lead Footsie to a post-pandemic high
Mining stocks led the FTSE 100 to a new post-pandemic high as fears over the Omicron variant continued to ease.
The blue-chip index rose 0.8pc, or 60.35 points, to 7551.72, its highest level in nearly two years.
London-listed mining groups were among the biggest risers with BHP up 4.5pc, or 101.5p to 2375p and Antofagasta 7.5pc, or 100.5p, higher at 1442.5p while Anglo American gained 3.9pc, or 125.5p, to 3364.5p, Glencore 3.5pc, or 13.45p, to 401.25p and Rio Tinto 2.9pc, or 151p, to 5452p.
Also on the rise was Russian steel firm Evraz, part-owned by Chelsea owner Roman Abramovich – up 2.7pc, or 16p, to 613.6p.
The mid-cap FTSE 250, meanwhile, rose 0.1pc, or 18.98 points, to 23,047.16. The sector is often considered a bellwether for the global economy, indicating traders were optimistic about 2022.
Oil stocks helped pull the FTSE 100 higher as crude prices continued to climb, passing $84 a barrel for the first time since november as fears that the Omicron variant will hit fuel demand began to fade. Shares in Shell rose 2.7pc, or 47.6p, to 1807.2p and BP bobbed up 3.2pc, or 11.85p, to 381.45p.
Scottish Mortgage Investment Trust gained 2pc, or 23.5p, to 1219.5p as investors turned optimistic again on US tech stocks, which make up a large portion of its portfolio. Markets were boosted by Federal Reserve chairman Jerome Powell saying the US central bank would do whatever it takes to contain inflation.
Meanwhile, more defensive bluechip stocks found themselves on the downside as risk appetite returned. BT fell 1.4pc, or 2.5p, to 174.65p while Lambert & Butler cigarette maker Imperial Brands dropped 0.4pc, or 6.5p, to 1661p.
Distribution specialist Bunzl bounced 2pc, or 54p to 2777p after snapping up US firm Tingley Rubber for an undisclosed sum. Tingley focuses on PPE and footwear and generated £49m in revenues last year. Mid-cap customer review website Trustpilot climbed 2.1pc, or 5.8p, to 273p on the back of a strong trading update. Revenues for the group rose 29pc year-onyear to £96m in 2021 as its bookings jumped 32pc to £110m.
Topps Tiles dropped 0.6pc, or 0.4p, to 63.6p after it warned profit margins were being hit by higher shipping costs and inflation. it came despite sales rising 1pc yearon-year in the 13 weeks to January 1 as good levels of trading extended further into December than usual as customers rushed to finish building projects.
Recruiter Page Group had a record 2021 as wage inflation and staffing shortages caused a boom in demand for its services. Profit for the year was expected to be around £165m. The shares fell 0.6pc, or 3p, to 630p. Defence firm Ultra Electronics inched up 0.8pc, or 24p, to 3146p after landing a deal to develop anti-submarine equipment for the indian navy.
The contract carries a price tag of £60m for Ultra, with deliveries due to begin in 2024.
iron miner Ferrexpo gained 4.8pc, or 14.4p, to 317.2p after a sharp increase in production in the fourth quarter of 2021.
The group produced nearly 3.1m tons of its iron ore pellets, 18pc higher than the third quarter.
AiM heavyweight Gamma Communications rose as it predicted its earnings for 2021 will be ‘in the top half’ of expectations. The provider of call centre and business phone systems highlighted strong demand in the UK and Europe. it was up 1.9pc, or 30p, to 1590p.
Elsewhere, budget airline Easyjet dipped 1.4pc, or 8.6p, to 621p as Deutsche Bank knocked its rating on the stock down to ‘hold’ from ‘buy’. Wizz Air also dropped 2.5pc, or 116p, to 4590p after Deutsche analysts cut their target to 5600p from 5800p.