FTSE 100 Movers: Kazakhmys leads the miners higher

16th Dec 2011 14:14

Kazakhmys leapt into the top spot after investors learnt that it has signed a memorandum of understanding with the China Development Bank Corporation for a $1.5bn loan facility, which is to be used for the development of the major copper project at Aktogay, East Kazakhstan.The facility consists of two separate agreements: the first for up to $1.34bn, and the second for up to Renminbi 1bn (about $158m). The funds will be available to draw down over a three-year period, following the satisfactory completion of the feasibility study, which is expected to be completed by the end of 2012. Kazakhmys wasn't the only miner to dominate the risers, with sector peers Antofagasta, Rio Tinto, Xstrata, Fresnillo, Lonmin and BHP Billiton also making strong gains. Speculation that the People's Bank of China could cut banks' reserve ratios this evening may be behind the strength in miners, according to some analysts.Banks were also in demand despite Fitch Ratings downgrading several lenders across the whole sector, due to the growing risks for financial markets arising from economic developments. Barclays, one of the banks that had its rating cut by two notches (from A to AA-, rose despite the news. The credit ratings agency raised Barclays' outlook from negative to stable. Meanwhile energy firm Essar Energy led the fallers on the top share index as the investigation into a scandal into the allocation of the 2G mobile phone spectrum rumbles on in India. Certain individuals associated with Essar have been implicated in the scandal, but Essar protests its innocence. Hedge fund manager Man Group was heading lower after Deutsche Bank downgraded the stock from "buy" to "sell".Power generator International Power also fell after its Chief Financial Officer (CFO), Mark Williamson, announced he will step down from the board at the next annual general meeting on 15 May 2012 in order to take up a position in GDF SUEZ.Geert Peeters will join International Power as Deputy CFO on 3 January, and is set to joined the board as CFO when Williamson leaves. FTSE 100 - RisersKazakhmys (KAZ) 877.50p +3.60%Antofagasta (ANTO) 1,163.00p +2.92%Xstrata (XTA) 974.20p +2.76%Lloyds Banking Group (LLOY) 24.72p +2.68%Fresnillo (FRES) 1,549.00p +2.45%Royal Bank of Scotland Group (RBS) 20.08p +2.24%Capita Group (CPI) 625.00p +2.21%G4S (GFS) 256.20p +2.15%Rio Tinto (RIO) 3,091.00p +2.05%Old Mutual (OML) 126.10p +1.94%FTSE 100 - FallersEssar Energy (ESSR) 183.40p -5.32%Man Group (EMG) 129.90p -2.70%Capital Shopping Centres Group (CSCG) 293.10p -2.17%International Power (IPR) 320.20p -1.99%Hargreaves Lansdown (HL.) 427.60p -1.68%British Sky Broadcasting Group (BSY) 715.50p -1.31%SSE (SSE) 1,249.00p -1.26%Investec (INVP) 334.10p -1.15%Hammerson (HMSO) 351.20p -0.93%Burberry Group (BRBY) 1,138.00p -0.87%NR