FTSE supported by telecos, BSkyB; mixed U.S. data

Fri Mar 12, 2010 12:34pm EST

* FTSE 100 gains 0.2 pct, up 0.5 pct for week

* BSkyB higher on market talk Murdoch could take private

* Mixed U.S. data stymies some momentum

By David Brett

LONDON, March 12 (Reuters) - Britain's top shares closed 0.2 percent higher on Friday, led by a recovery in mining stocks and strength in mobile telecoms, and as BSkyB rose on market talk that media mogul Rupert Murdoch could take the firm private.

The FTSE 100 .FTSE index ended 8.39 points higher at 5,625.65, after it closed 0.4 percent lower on Thursday. The index added just 0.5 percent this week.

"Lack of any key economic or corporate data continues to cause a problem for traders," said James Hughes, market analyst at CMC Markets.

"Like the rest of the week the rally fizzled out ... ending with a whimper rather than with a roar."

Miners reversed Thursday's losses as gold moved higher and copper prices steadied after recent falls following data that had revived concerns about monetary tightening in China. [ID:nLDE62B0Y1]

Eurasian Natural Resources (ENRC.L), Vedanta Resources (VED.L), Antofagasta (ANTO.L), Rio Tinto (RIO.L) and Anglo American (AAL.L) added 0.2 to 4.6 percent.

Mobile communication firms Vodafone (VOD.L) and Inmarsat (ISA.L) added most points to the FTSE 100, gaining 1.2 and 4.1 percent respectively helped by recent broker comment.

BSkyB (BSY.L) rose 5 percent with traders citing talk that Rupert Murdoch may take the British satellite broadcaster private. Both BSkyB and Murdoch's News Corp (NWSA.O) declined to comment on the rumour. [ID:nLDE62B1W1]

British Airways BAY.L climbed 2.2 percent. The airliner announced cabin crew will walk out for seven days this month after talks between with unions broke down, in a dispute analysts said could cost the airline around 140 million pounds ($212.4 million). [ID:nLDE62B10O]

Banks also provided support for the index, helped in part by the possibility that new banking regulations being studied by U.S. Congress could be watered down and as Britain's top banks look likely to avoid massive losses on Dubai World's debt pile. [ID:nLDE6280HG]

Royal Bank of Scotland (RBS.L), Lloyds Banking Group (LLOY.L), Barclays (BARC.L) added 2.4-5 percent.

But global banking heavyweight HSBC (HSBA.L) missed out, falling 1.5 percent with traders citing Goldman Sachs cutting its rating.

MIXED U.S. DATA

Mixed U.S. retail sales and consumer confidence data clouded the economic recovery picture for the world's largest economy, and provided some headwind for the UK market as the week drew to a close.

Sales at U.S. retailers rose unexpectedly in February despite a drop in vehicle purchases and inclement weather that was expected to curtail shopping. [ID:nN12202974]

Meanwhile, U.S. consumer sentiment declined slightly in early March, with Americans less positive about the job outlook. [ID:nN12123839]

Among UK stocks on the downside, food retailer Wm Morrison (MRW.L) fell 0.4 percent, extending Thursday's losses when it reported a cautious outlook, which echoed sentiment in the wider retail sector, in its full-year results.

Peers Tesco (TSCO.L) and J Sainsbury (SBRY.L) shed 0.3 and 0.9 percent respectively.

Defensively-perceived stocks were the main losers among the blue chip fallers.

Drugmakers were the biggest drag on the FTSE 100 index, with AstraZeneca (AZN.L), GlaxoSmithkline (GSK.L), and Shire (SHP.L) losing between 0.4 and 0.6 percent as sector sentiment continued to ebb and flow.

Beverages and tobacco also fell back, with SABMiller (SAB.L) down 1.2 percent and Imperial Tobacco (IMT.L) off 1.1 percent. ($1=.6592 Pound) (Editing by Sharon Lindores)

Related Quotes and News

Company
Price
Related News
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.