United Kingdom

FTSE 100 rises on mining, oil boost; Tesco drops in ex-dividend trading

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The London Stock Exchange Group offices are seen in the City of London, Britain, December 29, 2017. REUTERS/Toby Melville/File Photo

  • Recruiter Hays jumps on higher fee earnings
  • Dunelm Group gains on strong rise in sales
  • Ashmore slips as AUM drops by $3.1 billion
  • FTSE 100 up 0.9%, FTSE 250 adds 1.0%

Oct 14 (Reuters) - London's FTSE 100 rose to a two-month high on Thursday, boosted by heavyweight oil and mining stocks, while retailer Tesco was the top drag as its shares traded ex-dividend.

The blue-chip FTSE 100 index (.FTSE) climbed 0.9% and recorded its best session in a week, with miners Antofagasta (ANTO.L), Rio Tinto (RIO.L) and Glencore (GLEN.L) among the top performers.

Oil majors BP (BP.L) and Royal Dutch Shell (RDSa.L) gained 0.8% and 1.4%, respectively tracking over 1% jump in crude prices.

Industrial miners (.FTNMX551020) and oil stocks (.FTNMX601010) are the top performing sub-indexes so far this year, adding 28% and 37%, respectively.

The mining index has surged over 200% since their March 2020 lows on recovering metal demand as economies re-opened from pandemic-led lockdowns.

"On a broader basis, a slowdown in the global economic recovery could easily trigger a pullback in commodity prices in the near-term, but for today it seems that investors are very much risk-on," said Russ Mould, investment director at AJ Bell.

The FTSE 100 has gained 11.6% so far this year but the pace has slowed on bets that rising inflation pressures will lead central banks to pull back their accommodative monetary policies.

Bank of England policymaker Silvana Tenreyro said the central bank should not raise interest rates to tackle a surge in inflation caused by higher prices for energy and semi-conductors if it thinks these effects will be short-lived. read more

The domestically focussed mid-cap index (.FTMC) advanced 1.0%, with recruiter Hays Plc (HAYS.L) among the top gainers. The stock rose 3.0% after the company reported a jump in its quarterly net fees. read more

Dunelm Group Plc (DNLM.L) rose -0.2% after reporting a strong rise in sales despite an uncertain outlook for the coming year.

Ashmore Group (ASHM.L) fell 0.1% after its assets under management fell by $3.1 billion during the third quarter of 2021 on emerging market woes and institutional outflows. read more

Miners outperform FTSE 100 this year
Reporting by Bansari Mayur Kamdar and Amal S; Editing by Subhranshu Sahu and Sriraj Kalluvila

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