London midday: Equities advance on broad front

6th Jul 2010 12:14

Footsie ended the morning sporting a triple digit gain with just a couple of index constituents failing to participate in the advance.Banks and miners are vying to drive the market higher with miners winning through weight of numbers. Antofagasta, Kazakhmys, Xstrata, ENRC and Rio Tinto are the stand out performers in the mining sector, as commodity stocks come back into fashion after their recent buffeting, though gold miner African Barrick is one of the rate blue-chips heading south today.In the banking sector Barclays and Royal Bank of Scotland lead the way. BP is also posting strong gains. It has denied looking to raise new money from sovereign wealth funds, but is just highlighting its strengths to potential investors. Royal Bank of Scotland appears to be convinced as it has upgraded the stock from "hold" to "buy" on the grounds that the worst case scenario for the Gulf og Mexico oil spill liability is already priced in.Tullow Oil has had a "very good" first half during which production came in on target and revenue increased about 13% to almost half a billion dollars. It's expected to be between 56,000 and 57,000 boepd for all of 2010. Housebuilder Persimmon said private sale reservations have softened around the time of the new government's budget proposals, though sales prices and margins have continued to increase. "Since early May we have experienced the normal seasonal slow down in private sale reservations. We believe this was also due partly to the uncertainty created prior to the announcement of the new government's budget proposals. In the short period since the budget, sales have been in line with our expectations," the group said. Turnover for the six months to 30 June was up by 26% at around £785m. Pub group Punch Taverns said market conditions remain challenging given the relatively weak UK consumer environment, though trading during the World Cup has been good with like for like sales growth over this period.Steam trap and pump specialist Spirax-Sarco has enjoyed a strong first half with sales and margins both rising sharply. Contractor and infrastructure group Balfour Beatty's trading this year remain on track despite mixed performances in its operations. "There remain uncertainties in some parts of our markets, particularly with regard to government funding of infrastructure investment. However, in other markets prospects remain robust. Overall, we remain confident about the outlook for the group," Balfour said.The number of passengers flying with low cost airline easyJet jumped over 9% in June to more than 4.5m, helped in part by strike action at British Airways. Its orange liveried planes carried 4.54m people last month, up from 4.15m a year earlier, increasing the total for the last 12 months by 7% to 47.64m.The World Cup in South Africa has hit PartyGaming's poker business harder than expected, knocking quarter on quarter revenue by 2%, though trading since the end of April was in-line with expectations. Revenue, now published in euros, would have fallen between 6% and 7% quarter on quarter in dollar terms, in line with previous guidance.Internet and catalogue home shopping company N Brown posted weaker than expected sales figures and said trading since the general election has been subdued.Outsourced utility support services group Spice is still resisting the bid overtures of Cinven even though the European buy-out specialist has increased its indicative offer. The new conditional offer from Cinven is in the range of 62p to 65p per Spice share, up from its sighting shot of 56p announced last month. Schools IT equipment supplier RM Group said income from Building Schools for the Future (BSF) projects may be "scaled back significantly," following a review by the government on the programme.Peter Jones, one of the hard-nosed businessmen on TV show Dragon's Den, is reversing two of his companies into smartphone retailer eXpansys. The AIM-listed company will pay £38m for SIM card seller Data Select Network Solutions (DSNS) and web design and online marketing firm PJ Media, funded by a £30m placing priced at 5.6p a share.FTSE 100 - RisersAntofagasta (ANTO) 810.50p +6.50%Kazakhmys (KAZ) 1,030.00p +6.46%Barclays (BARC) 274.25p +5.81%Xstrata (XTA) 899.00p +5.64%Eurasian Natural Resources (ENRC) 861.50p +5.32%Rio Tinto (RIO) 3,029.50p +5.17%Fresnillo (FRES) 995.50p +4.79%Vedanta Resources (VED) 2,199.00p +4.71%Lonmin (LMI) 1,421.00p +4.49%Royal Bank of Scotland Group (RBS) 40.70p +4.47%FTSE 100 - FallersAfrican Barrick Gold (ABG) 595.00p -0.92%Pearson (PSON) 886.50p -0.11%Serco Group (SRP) 561.50p 0.00%British Sky Broadcasting Group (BSY) 694.00p -0.00%Cable & Wireless Worldwide (CW.) 86.05p +0.06%Tesco (TSCO) 390.00p +0.24%Smith & Nephew (SN.) 581.50p +0.26%United Utilities Group (UU.) 527.50p +0.29%Severn Trent (SVT) 1,234.00p +0.33%Reed Elsevier (REL) 497.00p +0.38%