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Miners, banks help FTSE to scale one-month high
September 12, 2013 / 8:16 AM / 4 years ago

Miners, banks help FTSE to scale one-month high

* FTSE 100 index rises 0.2 percent, hits 1-month high

* Miners, banks gain on pick up in economic recovery

* Morrisons top gainer on second-half outlook

By Atul Prakash

LONDON, Sept 12 (Reuters) - Britain’s top share index edged higher to set a one-month high on Thursday, with mining shares gaining on expectations of an improvement in industrial metals demand and financials stocks rising on a better economic outlook.

At 0742 GMT, the blue-chip FTSE 100 index was up 10.23 points, or 0.2 percent, at 6,598.66 points after rising to a one-month high of 6,600.45.

“The last two weeks have shown that volumes have picked up and investors are returning after the summer break. Miners and banks have been favourites amongst clients, with Chinese data helping the mining sector this week,” Amrit Panesar, senior trader at Accendo Markets, said.

The UK mining index rose 0.4 percent, while banks were up 0.2 percent on expectations that a recovery in the global economy would help cyclical shares such as financials and industrials.

“I remain on the bid side of the market,” Mike Jarman, head of equity strategy at H2O Markets, said.

“I‘m showing keen interest in financials due to continued supply of liquidity, and in basic resources as the Chinese hard landing is averted.”

The UK mining index has surged more than 20 percent since July after falling in the previous two quarters, with recent positive data from China, the world’s top metals consumer, suggesting economic momentum in the country is gathering pace.

Among individual sharp movers, Morrisons rose 4.8 percent to top the FTSE gainers’ list after Britain’s No. 4 grocer, whose first-half profit fell 10 percent, predicted an improvement in second-half sales performance and said it would have 200 convenience stores by the end of 2014.

“It is not all negative in the update, as management has outlined its future capital plans which will see a significant reduction in capital expenditure and new superstore space in the medium term,” Shore Capital said in a note. (Editing by Stephen Nisbet)

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