Overview: The FTSE 100 preserved its early gains, standing 45 points, or 0.8% above the opening level following a positive start on Wall Street. The US stock market got a boost from today’s retail sales update, which showed a 1.3% increase in November, which was double the expected figure.
The sentiment was further strengthened by the University of Michigan consumer confidence index, which rose for the first time in three months, improving to 73.4%.
The Dow Jones Industrial Average gained 0.5%, the broader Standard & Poor’s 500 index rose 0.4% and the technology focused Nasdaq composite added 0.2%.
The Footsie also benefitted from positive domestic data, getting a boost from today’s update from the Office for National Statistics, which said that output producer prices showed the largest increase in nine month, rising 0.2% from October and 2.9% year on year, largely due to higher fuel prices.
Communications services group WPP (LSE: WPP) emerged atop the leaderboard with a 4% gain, followed by miner Vedanta Resources (LSE: VED) and credit information group Experian (LSE: EXPN), which both added more than 3.5%.
Other notable risers included tour companies Thomas Cook (LSE: TCG) and TUI Travel (LSE: TT) and power generation company International Power (LSE: IPR), which all gained more than 3%. Fashion house Burberry (LSE: BRBY) also did well, climbing 2.7%.
No FTSE 100 constituent except for bailed out banks Lloyds (LSE: LLOY) and RBS (LSE: RBS) lost more than 2% today. Insurer Legal & General (LSE: LGEN), Home Retail Group (LSE: HOME), London Stock Exchange Group (LSE: LSE) and supermarket chain Morrison (LSE: MRW) also were among the biggest fallers with losses of 1.5%.
Commodities
Oil prices slid with January Brent Crude sliding to US$71.87/barrel, while US benchmark crude dropped to US$70.23/barrel.
Oil and gas stocks had their early gains trimmed as oil prices slid. Cairn Energy (LSE: CNE) rose 1.2%, while BP (LSE: BP) tacked on nearly 1% as fellow supermajor Shell (LSE: RDSB) posted an insignificant gain, as did Petrofac (LSE: PFC). Tullow Oil (LSE: TLW) and BG Group (LSE: BG) were flat.
Dana Petroleum (LSE: DNX) was the top performer among the midcaps with a 1% climb. Heritage Oil (LSE: HOIL) declined marginally, while Dragon Oil (LSE: DGO) tumbled 8% after its minority shareholders voted down ENOC's offer.
Irish oil and gas exploration company Petroceltic International (AIM: PCI) led the small caps, advancing 7.5%. Mongolia-focused Petro Matad Ltd (AIM: MATD) and North America focused oil & gas junior Pantheon Resources (AIM: PANR) followed, climbing 6.7% and 4%.
Eastern Europe focused junior Aurelian Oil & Gas (AIM: AUL) and US focused oil and gas junior Caza Oil & Gas (AIM: CAZA) headed in the opposite direction, shedding more than 5%. Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LSE: GOO) was down 3.5%.
Gold, silver and platinum fall, but miners advance
Precious metals slid after gaining early in the day. Gold slipped to US$1,124/oz, while silver and platinum were down to US$17.25/oz and US$1,418/oz respectively.
Silver producer Fresnillo (LSE: FRES) and platinum miner Lonmin (LSE: LMI) led the sector with gains of 2.3%, while gold miner Randgold Resources (LSE: RRS) followed, rising 1%.
Specialty chemicals firm Johnson Matthey (LSE: JMAT) tacked on nearly 1%.
Gold miner Petropavlovsk (LSE: POG) led the midcaps with a 4.3% climb. Aquarius Platinum (LSE: AQP) and silver producer Hochschild Mining (LSE: HOC) both added more than 2%.
Commodity asset development company Mercator Gold (AIM: MCR) led the sector, hiking 26% after releasing assay results from its Copper Flat project. Turkey and Saudi Arabia operating gold explorer KEFI Minerals (AIM: KEF) also did well with a 6.7% improvement.
Lesotho operating diamond miner Kopane Diamond Developments (AIM: KDD), Brazil focused gold miner Horizonte Minerals (AIM: HZM) and Canada based junior gold developer Rambler Metals and Mining Plc (AIM: RMM) headed in the opposite direction, sliding 6.2%, 4.5% and 3.5%, respectively.
Copper and nickel rise
Base metals rose today as copper climbed to US$3.09/lb and nickel reached US$7.35/lb, while zinc held steady at US$1.03/lb.
Vedanta Resources (LSE: VED) led the base metals focused stocks with a 4% gain. Kazakhmys (LSE: KAZ) was up 3%, while Antofagasta (LSE: ANTO) and Xstrata (LSE: XTA) gained 2.5% and 2% respectively. BHP Billiton (LSE: BLT) and Rio Tinto (LSE: RIO) added 1.5%, as did Anglo American (LSE: AAL). Eurasian Natural Resources (LSE: ENRC) was at the bottom of the pile with a marginal loss.
Laterite nickel specialist European Nickel (AIM: ENK), copper and nickel explorer Regency Mines (AIM: RGM) and Botswana operating nickel and copper miner Discovery Metals (AIM: DME) were among the top performers in the sector today, advancing 9%, 6% and 4%, respectively. Cement operator Prosperity Mineral Holdings (AIM: PMHL), South Africa based coal exploration and production company Strategic Natural Resources (AIM: SNR) and mineral sands producer Kenmare Resources (LSE: KMR) didn’t do as well, sliding 5.5%, 5% and 3.5%, respectively.
Banks, insurance, private equity
With the exception of Standard Chartered (LSE: STAN), which advanced 1.2%, all major banking stocks declined. Part-nationalised banks Lloyds (LSE: LLOY) and Royal Bank of Scotland (LSE: RBS) lost more than 1%, as did HSBC (LSE: HSBA), while Barclays (LSE: BARC) declined marginally.
Insurers were mixed. Aviva (LSE: AV), RSA Insurance Group (LSE: RSA) and Standard Life (LSE: SL) were flat, while Prudential (LSE: PRU) declined marginally. Legal & General (LSE: LGEN) and Admiral Group (LSE: ADM) declined 1.7% and 1.2% respectively.
Private equity group 3i (LSE: III) shed less than 1%.
Small Cap Movers
Other notable movers among the small caps included Planet Payment (AIM: PPT), which tumbled 7.6%.
Large and Mid Cap News
In its first half results report for the 26 weeks ended 24 October, UK retailer HMV Group plc (LSE: HMV) said it narrowed its losses but continues to operate in challenging and highly competitive markets, however the HMV UK & Ireland business remains on track, and it is confident in the outlook for the current year.
In a pre-close statement, construction and support service company Carillion PLC (LSE: CLLN) said it is performing strongly in challenging market conditions. For the 12 months to 31 December, the FTSE250 constituent expects underlying earnings per share to grow by at least 10%.
Costa Coffee parent company, Whitbread Plc (LSE: WTB) confirmed it is in advanced discussions regarding a possible 24p per share offer for Coffeeheaven international (AIM: COH). The European coffee bar operator jumped more than 11% immediately after the announcement.
Dragon Oil PLC (LSE: DGO) said minority shareholders at the extraordinary general meeting have voted down the recommended minority-buyout by 51.5 percent shareholder Emirates National Oil Co Ltd LLC (ENOC) at 455 pence a share.
Small Cap News
Fusion IP PLC (AIM: FIP) the university commercialisation company which turns university research into business, said MedaPhor, which is developing an ultrasound training device, has raised £190,000, including £75,000 each from Fusion and Finance Wales PLC.
Broker Westhouse initiated coverage of Discovery Metals (AIM: DME, ASX: DML), giving the Botswana operating nickel and copper miner a “buy” rating and setting a target price of 35.25 pence, calling its core asset Boseto “an excellent copper project with plenty of upside.”
South America focused gold producer Minera IRL Ltd (AIM: MIRL) said executive chairman Courtney Chamberlain bought a further 20,000 shares in the company at 97 US cents each.
Shares in Mercator Gold (AIM: MCR) rallied 20% after the company updated the market on the evaluation of the Copper Flat project in New Mexico, where assaying of historic drill core and pulp residues has so far showed “good conformity with historic drill results” that were used for the estimation of the project.
ValiRx (AIM: VAL) has entered an equity line of credit (ELOC) agreement with US based Dutchess Opportunity Fund, allowing it to raise £3 million of equity capital in drawdowns over two years.
Shares in Hallin Marine Subsea International (LSE: HMS), surged over 75% this morning following the announcement of a proposed takeover bid of 233p per share from Superior Energy Services (NYSE: SPN). The recommended cash offer represents an 87% premium on the closing price on the 10th December.
Rusina Mining NL (AIM: RMLA, ASX: RML) and its joint venture partner European Nickel PLC (AIM: ENK) jointly announced that the Acoje nickel heap leach trial pad and pilot plant was officially opened on December 9 2009 on Luzon Island in the Philippines.