London close: Stocks gain as markets shrug off gloomy production data

12th Mar 2013 16:52

In spite of some dismal production data from the UK, the FTSE 100 finished Tuesday's session slightly higher as the benchmark index continues to set fresh five-year highs.Copper producer Antofagasta was providing a lift in London, rising on the back of its strong 2012 results, while IAG gained on positive developments at its Iberia airline.The Footsie pushed well ahead of the 6,500 mark today, a level not seen since late 2007 before the financial crisis sparked a sell-off in financial markets worldwide.UK production data disappointsBritish industrial production fell at a seasonally-adjusted rate of 1.2% in January, according to the Office for National Statistics, much worse than the 0.1% decline expected by analysts. Meanwhile, manufacturing output was even weaker, contracting at a 1.5% pace (consensus forecast: -0.3%).However, as Senior Market Analyst Michael Hewson from CMC Markets explained, traders seemingly shrugged off the data, with gains extended in afternoon trade."Given the terrible purchasing managers' index data seen earlier this year, these figures shouldn't have been too much of a surprise and the likelihood is that they will make it all the more likely that monetary policy will get ever looser in the months to come," Hewson said. The pound slumped to a new two-and-a-half-year low against the dollar this morning after the data, trading at 1.4831. By the close, it had recovered to 1.4878, still down 0.25% on the day.On the other hand, UK trade data beat expectations today as imports fell more than exports. The trade deficit narrowed slightly from an upwardly revised £8.7bn in December to £8.2bn in January, better than the £9.0bn consensus forecast.Also supporting stocks this morning was a healthy T-bill auction in Spain as Madrid sold more debt than expected at lower costs thanks to increased demand. Meanwhile, funding costs at a short-term Italian debt auction rose to a three-month high this morning but the Treasury was still able to sell its targeted amount.FTSE 100: Antofagasta jumps after strong yearCopper miner Antofagasta was a high riser after unveiling a 10.9% jump in revenues in 2012, helped by a year of record production. Revenues reached $6.74bn, beating the $6.5bn forecast from Investec. Copper peer Kazakhmys was also firmly higher this afternoon.Airline group IAG was performing well after reports that it has sealed a deal with labour unions in Spain to avert industrial action at its Iberia division. Meanwhile, technical analysts have pointed out that the stock is now at technical resistance between the 255-260p level. Hotels operator IHG gained after UBS raised its recommendation for the shares from 'sell' to 'neutral' and substantially lifted its target price from 1,300p to 2,100p, labelling the business a "high-quality structural story". UK banking group Lloyds was higher after trimming its holding in wealth management outfit St James's Place via a placing in an effort to strengthen its capital cushion. Investec upgraded its rating for the stock this morning from 'sell' to 'hold'. Fellow lender RBS was benefitting from rumours regarding the auction of more than 300 of its branches as the sale attracts more interest.Heading the other way was real estate group British Land as investors showed concerns about the dilutive impact to the stock from a proposed placing to raise £500m. The company also said that it has sold Ropemaker Place in London for £472m and said that proceeds from both would go towards "attractive investment opportunities". FTSE 250: Kenmare and IG Group provide a liftKenmare Resources shares soared after the operator of the Moma titanium minerals mine in Mozambique revealed a considerable rise in profits and revenues. Spread-betting firm IG Group advanced as it posted an 18% increase in revenues for the third quarter of the 2013 financial year.On the lower end of the spectrum, SDL shares slipped as the translation and communications software firm said weak performance in technology and underinvestment in the company hurt its full year performance.FTSE 100 - RisersKazakhmys (KAZ) 552.00p +6.05%International Consolidated Airlines Group SA (CDI) (IAG) 257.20p +4.77%Petrofac Ltd. (PFC) 1,539.00p +4.06%Antofagasta (ANTO) 1,129.00p +3.10%TUI Travel (TT.) 320.30p +2.96%BAE Systems (BA.) 377.60p +2.28%Melrose Industries (MRO) 277.10p +2.21%G4S (GFS) 307.50p +2.02%Randgold Resources Ltd. (RRS) 5,565.00p +2.02%InterContinental Hotels Group (IHG) 2,011.00p +1.82%FTSE 100 - FallersBritish Land Co (BLND) 555.00p -4.39%Hammerson (HMSO) 505.50p -2.51%Standard Chartered (STAN) 1,788.50p -1.84%United Utilities Group (UU.) 714.00p -1.31%Aggreko (AGK) 1,886.00p -1.20%Serco Group (SRP) 625.50p -1.18%Admiral Group (ADM) 1,344.00p -1.10%Land Securities Group (LAND) 823.50p -1.08%Next (NXT) 4,115.00p -1.06%HSBC Holdings (HSBA) 729.40p -0.72%FTSE 250 - RisersKenmare Resources (KMR) 34.27p +9.49%Dixons Retail (DXNS) 34.55p +7.63%IG Group Holdings (IGG) 561.50p +7.57%Anite (AIE) 134.90p +3.77%Ocado Group (OCDO) 142.60p +3.33%AZ Electronic Materials SA (DI) (AZEM) 390.00p +2.36%Ferrexpo (FXPO) 220.00p +2.28%African Barrick Gold (ABG) 241.50p +1.94%Atkins (WS) (ATK) 913.00p +1.84%RPS Group (RPS) 252.50p +1.81%FTSE 250 - FallersSDL (SDL) 444.00p -11.04%Ophir Energy (OPHR) 420.80p -6.49%Raven Russia Ltd (RUS) 71.80p -4.20%Debenhams (DEB) 81.45p -3.72%St James's Place (STJ) 519.50p -3.17%BTG (BTG) 332.30p -3.12%Bwin.party Digital Entertainment (BPTY) 151.50p -2.88%QinetiQ Group (QQ.) 196.10p -2.44%LondonMetric Property (LMP) 106.00p -2.30%Inchcape (INCH) 518.00p -2.26%BC