Commodities firms buoyed by oil’s gains

Investors continued to push the UK’S biggest shares upwards as they remain hopeful that the economy could open up, and shrugged off dire financial warnings from the Bank of England.

The FTSE 100 added 82.22 points to end the day up 1.4 per cent at 5,935.98.

Ahead of the bank holiday weekend, the Bank of England warned that the UK economy could shrink by 14 per cent this year, as businesses shut their doors to slow the coronavirus spread.

However, the dire economic predictions, and another round of brutal jobs figures from the US, were not enough to dampen market optimism.

The news that mining giant Anglo American could list its South African coal mines put it at the top of the pile among London’s 100 biggest companies. It was also one of several businesses that benefited from increasing oil and metal prices.

Brent crude oil firmly breached the $30 mark and it had gained 4.5 per cent shortly after markets closed in the UK.

It helped Shell add 2.7 per cent to its share price, and BP was up 0.7 per cent.

“Saudi Arabia has lifted its selling prices for oil, and US producers have cut back on output. In addition to that, gasoline stockpiles in the US have been falling too, so that has all helped the oil market,” said David Madden, an analyst at CMC Markets.

In company news, almost a quarter of Barclays shareholders voted for a plan to phase out fossil fuel funding at the bank. However, the attempt was beaten by a board-backed plan. Shares rose 4.5 per cent.

Superdry shares gained 5.2 per cent despite a nearly 37 per cent drop in sales during the its most recent quarter, amid the news it was looking at its financing options.

Rolls-royce took a 2.3 per cent hit after it signalled jobs cuts could be on the cards in an announcement due later in the month.

BT fell to the bottom of the FTSE 100 after it scrapped its dividend for the next two years. Shares fell 8.1 per cent.

Two steps below BT in the list of the biggest losers on the index was British Airways and Aer Lingus owner International Consolidated Airlines Group, which revealed it does not expect to return to full capacity until 2023.