DAVID MYRDDIN-EVANS
Shares started the week on the front foot with the FTSE 100 inching higher following Friday’s record close. Mining firms led the way with strong gains as the rest of the market appeared to take a breather after a hectic period of monetary policy announcements.
In early trade on Tuesday shares were heading up, helped by positive sessions in the US and Asia.
The FTSE 100 was up 0.7% overall last week, buoyed by the pound’s weakness following Thursday’s interest rate rise.
The index edged up to a record closing high of 7,560 on Friday, with NMC Health leading the risers with a 4.3% gain.
Thursday saw a 0.9% jump as the pound fell heavily after the Bank of England’s rate rise announcement.
Dollar-earning companies saw good gains, with BHP Billiton up 2.7% and Shire adding 2%.
Mediclinic International, which is also listed in South Africa, climbed 4.1% as the pound lost nearly 2% against the rand. Ladbrokes was also up 5.5% on hopes of another takeover approach from GVC.
Next dived 9.1% on Wednesday after a sharp fall in store sales. Marks & Spencer lost 4.4% ahead of halfyear results due on November 8, while Debenhams was down 2.9%.
However, the FTSE 100 fell only 0.1%, with support coming from mining shares which were boosted by higher metal prices. Aviva was also up 1.6% on the back of a broker upgrade.
Last Tuesday, Royal Mail fell 3.9% to its lowest level since privatisation on concerns about trading and labour costs. Imperial Brands was also off 2.2% amid worries about falling sales in Germany – the tobacco company’s second-biggest market after the US.
But oil stocks kept the wider market in positive territory, with BP up 1.7% on strong quarterly results and the announcement of a share buyback.