Miners keep FTSE on track for weekly gain as Anglo beats consensus

Fri Feb 14, 2014 4:46am EST

* FTSE 100 up 0.1 pct

* Anglo America rises after results beat forecasts

* Tate & Lyle, Rolls Royce extend fall after results

By Francesco Canepa

LONDON, Feb 14 (Reuters) - Basic materials shares helped keep Britain's top equity index on track for a second straight weekly gain on Friday after strong results from global miner Anglo American.

Anglo's stock rose 1.2 percent after the firm beat consensus with its 2013 operating profit and reported a profit at its platinum unit.

"The results from Anglo platinum are pretty good and... they're getting costs down," said Matthew Hasson, director of mining equity sales at Numis Securities.

Global strategists at Citi recommended investing in basic materials shares with an emerging market exposure, highlighting lower capital expenditure and improved cashflow generation.

The basic materials sector added 6.3 points to the FTSE 100 , which was up 5.40 points, or 0.1 percent, at 6,664.82 points.

The index was up 1.3 percent for the week, on track for its second consecutive weekly gain. It climbed above its 50-day moving average, a technical signal which suggest underlying support from buyers.

"It's just a pause, really," Alistair McCaig, an analyst at IG said. "There wasn't a driving force of positive news to push us further."

Food ingredients firm Tate & Lyle and engineer Rolls Royce, which gave disappointing outlooks on the previous day, extended their losses in heavy volume on Friday.