London open: Miners on the march

9th Dec 2010 08:44

The leading share index is posting good gains this morning, with the mining sector on the march as metals prices advance.Platinum specialist Lonmin leads the FTSE 100 higher. Copper miners Antofagasta, Kazakhmys and ENRC are also in demand, as are the Australian iron ore duo Rio Tinto and BHP Billiton.Copper has been hitting record levels amid concerns over production shortages.Banks are also strong, with Lloyds and RBS among the top risers, but Asia-focused Standard Chartered is lower after a trading statement. It is expecting another record year for profits and revenues though it did complain of increasing competition for staff and higher regulatory costs.Ashtead is a strong performer today after saying growing sales in North America lifted second quarter sales at the equipment hire firm. Shares in packaging group DS Smith rose after it announced higher revenues and profits in the first half and said the strong performance had continued despite rising input costs. Pre-tax profits in the six months to 31 October climbed by 17.5% from the same period the previous year to £40.2m. Revenues by 15.3% to £1.17bn. Premier Farnell is today's laggard even after the electronic and industrial components supplier posted another surge in profit. Underlying profit before tax jumped 70% to £23.6m in the three months ended 31 October, taking the nine-month figure to £69.6m, up 85%. Revenue rose 23% to £251.3m for the quarter and up 24% to £748.3m for the six months.Also lower is Misys, the financial software specialist, which has had a pretty flat first half, held back by delays to some large orders, now expected to close in the second half. Estimated revenue for the six months ending 30 November is £160-162m compared with £160.6m a year ago, while adjusted operating profit is put at £20-23m versus £21.6m in 2009. As expected, "extremely difficult" market conditions and a bigger than expected first half loss have forced CD and DVD retailer HMV to slash the interim dividend. The owner of book chain Waterstone's lost £41.3m before tax in the 26 weeks ended 23 October, up from £24.9m last year and worse than the City had predicted. And things haven't gone well at the start of the key Christmas trading period, with the snow "significantly" affecting consumer footfall.Men's outfitter Moss Bros says the positive trend experienced earlier in the year has continued as the company heads into the crucial Christmas period. Like-for-like sales were up by 8.3% in the first 18 weeks of the second half. "We enter this key trading period in the best shape we have been in for some time," says boss Brian Brick.