London midday: Stocks erase losses on mining strength, Synergy soars

13th Oct 2014 11:35

After a weak start, UK stocks had erased losses by Monday lunchtime, helped by decent gains in the heavyweight mining sector and a takeover offer for Synergy Health.London's FTSE 100 was trading 0.3% higher at 6,358 by around midday, bouncing off a low of 6,302 reached in early deals.UK equities had fallen for the last four sessions on the back of rising concerns about the spread of the deadly Ebola virus and a global economic slowdown.Miners have bore the brunt of the recent selling pressure as commodity prices have fallen amid anxieties about an easing of growth, particularly in China.However, trade data from the Asian powerhouse released on Monday eased fears somewhat after both exports and imports jumped strongly in September. Exports surged by 15.3% after 9.4% growth in August, ahead of the 12% increase expected, while imports unexpectedly jumped 7% after a 2.4% decline previously, surprising analysts who had forecast a 2% drop.Synergy rockets, mining stocks jumpShares in Synergy Health surged by 30% mid-morning after US group Steris Corp offered $1.9bn for the UK sterilisation services provider in a cash-and-stock deal. Analysts at Canaccord Genuity said it was an "attractive price for Synergy holders".Mining peers Anglo American, Rio Tinto, Randgold Resources, BHP Billiton, Antofagasta and Glencore were among the best performers on the FTSE 100, while FTSE 250 groups Ferrexpo, Hochschild Mining and Polymetal also rose.Rio Tinto gained after Barron's said that the stock "looks attractive" and could rise 20% over the next year even if a potential merger with Glencore doesn't happen. UBS lifted its rating for Randgold from 'neutral' to 'buy'.Meanwhile, broker Canaccord Genuity said that recent growth concerns in the mining sector have been "overdone" and recommended investors to "build positions in this period of share-price weakness".Aquarius Platinum, however, bucked the trend by falling into the red after announcing that an employee died in an accident at its Kroondal mine in South Africa. The company said that it had to suspend operations at the Kwezi shaft pending a technical review.Melrose was on the rise after the manufacturing conglomerate said it would sell its industrial rope and cable division Bridon for £365m - a price above some analysts' expectations.Medical technology firm Smith & Nephew declined after results from a ulcer therapy study showed that the treatment didn't meet its primary end-point. Investec downgraded the stock from 'add' to 'hold' after the news. Market MoverstechMARK 2,657.84 -0.47%FTSE 100 6,357.54 +0.28%FTSE 250 14,638.26 -0.02%FTSE 100 - RisersAnglo American (AAL) 1,378.50p +4.00%Rio Tinto (RIO) 3,069.00p +3.51%Randgold Resources Ltd. (RRS) 4,343.00p +3.48%International Consolidated Airlines Group SA (CDI) (IAG) 334.00p +2.64%St James's Place (STJ) 690.50p +2.60%BHP Billiton (BLT) 1,655.50p +2.60%Fresnillo (FRES) 768.00p +2.54%GKN (GKN) 292.90p +2.23%Glencore (GLEN) 319.10p +2.19%Antofagasta (ANTO) 675.00p +2.04%FTSE 100 - FallersARM Holdings (ARM) 825.00p -2.08%Smith & Nephew (SN.) 975.00p -1.61%Diageo (DGE) 1,706.00p -1.36%Shire Plc (SHP) 5,145.00p -1.34%G4S (GFS) 252.20p -1.29%Intu Properties (INTU) 312.30p -1.23%Tesco (TSCO) 183.10p -1.16%Royal Mail (RMG) 394.30p -1.05%SABMiller (SAB) 3,256.50p -1.02%Land Securities Group (LAND) 1,019.00p -0.97%FTSE 250 - RisersSynergy Health (SYR) 1,818.00p +29.86%Ferrexpo (FXPO) 94.05p +7.06%Polymetal International (POLY) 487.90p +3.46%Evraz (EVR) 121.90p +3.31%Hochschild Mining (HOC) 119.80p +3.28%Lonmin (LMI) 175.30p +2.94%Afren (AFR) 99.85p +2.73%International Personal Finance (IPF) 454.00p +2.71%BlackRock World Mining Trust (BRWM) 358.80p +2.51%RPS Group (RPS) 225.50p +2.50%FTSE 250 - FallersCSR (CSR) 650.00p -3.13%Alent (ALNT) 303.10p -2.95%Rank Group (RNK) 156.60p -2.73%Essentra (ESNT) 724.00p -2.43%Synthomer (SYNT) 189.60p -2.17%Countrywide (CWD) 463.40p -2.15%Brown (N.) Group (BWNG) 289.20p -1.97%esure Group (ESUR) 223.60p -1.80%Nostrum Oil & Gas (NOG) 689.00p -1.64%Go-Ahead Group (GOG) 2,458.00p -1.64%