London close: Miners push Footsie higher

2nd Dec 2009 17:09

Despite being weighed down by a number of ex-dividend stocks, Footsie finished the day in positive territory, with gains on miners outweighing losses on banks.With metals prices hardening, miners were in demand. Lonmin was the best performer after being raised to 'buy' by Investec, which also upgraded its price target for FTSE 250 miner Aquarius Platinum. India-focused miner Vedanta also got a lift from a 'buy' recommendation by Goldman Sachs, but Anglo American's progress was checked by a downgrade to 'neutral' by Goldman Sachs.Elsewhere in the mining sector, Rio Tinto and Kazakhmys were the best performers. Banks were under a cloud, however, especially Royal Bank of Scotland (RBS), where the government will be calling the tune in terms of 2009 bonus payments at the part nationalised bank. The move is one of the conditions of the bank's participation in the government's asset protection scheme. Investors fear that a politically motivated bonus scheme could prompt talent to leave the bank, undermining its competitive position.Swiss bank Credit Suisse added to the UK banking sector's woes by claiming that all UK banks are overpriced, even after the hammering they have taken in the last two weeks. Credit Suisse advises against holding any UK bank but for those who insist on having exposure to the sector it reckons Barclays is the one to pick.Broker comment lifted mobile phone networks giant Vodafone and oilfield services group Amec. Credit Suisse has upped its Vodafone target price from 150p to 160p while Evolution Securities has upgraded Amec from 'add' to 'buy'.Newcastle-based accountancy software firm Sage lifted its dividend and said conditions have stabilised in the second half. The total dividend has been increased by 3% to 7.43p per share (2008: 7.21p per share). The group said the rise is reflecting the strength of cash flows and its robust business performance.Elsewhere in the software sector, meaning based computing specialist Autonomy raced ahead after being named as the most admired software and computer services company in Management Today's Most Admired Companies awards list for 2009.In corporate news, Irish budget airline Aer Lingus is closing down loss-making routes and will start making compulsory redundancies after failing to reach a deal with the unions over cost savings. The carrier said it had "narrowed the gap" with most union groups, but had met stiff opposition from unions representing pilots and cabin crew.Stockbroker and fund manager Brewin Dolphin saw profits slide in the year to September 27 after one of the most tumultuous periods for the financial services industry. Pre-tax profits fell to £21.9m from £32m, even as total income climbed to £212.3m from £206.5m.Rival Numis slumped to a loss of over £10m last year as write-downs on its investment portfolio and fewer company listings took their toll. Legal & General has announced the appointment of John Stewart as non-executive chairman of the insurer in succession to Sir Rob Margetts. Stewart will become chairman-designate from 1 January 2010.Business publisher Informa giave back some of the gains it made yesterday in the wake of the news that it has scrapped merger talks with German publisher Springer.Carillion said the City of Toronto has appointed Carillion Canada as construction manager for the revitalisation of the City's Union Station, a 5-year project valued at around £360m. Regeneration developments around the 2012 Olympics site helped Telford Homes, which builds homes in East London, buck the general gloom in the housebuilding sector to post a surge in profits. The strong results prompted it to reinstate its dividend payment at 0.75p.Shares in Catalyst Media jumped after the investor in betting technology posted a nearly ten-fold rise in profits. Shares in gold miner Leyshon Resources jumped after it said it had sold its Zheng Guang gold project in China ahead of schedule. It now has over US$44m in cash.FTSE 100 - RisersLonmin (LMI) 1,911.00p +3.24%Sage Group (SGE) 221.10p +2.98%Autonomy Corporation (AU.) 1,480.00p +2.64%Rio Tinto (RIO) 3,292.00p +2.55%Vedanta Resources (VED) 2,445.00p +2.47%Kazakhmys (KAZ) 1,310.00p +2.34%FTSE 100 - FallersCairn Energy (CNE) 3,064.00p -2.61%London Stock Exchange Group (LSE) 745.50p -2.55%National Grid (NG.) 652.50p -2.32%Legal & General Group (LGEN) 75.70p -2.13%Royal Bank of Scotland Group (RBS) 33.55p -2.09%Lloyds Banking Group (LLOY) 53.10p -1.92%