London Markets: Miners, Sainsbury boost FTSE 100

February 22, 2013

LONDON (MarketWatch) — U.K. stocks on Friday recovered a portion of the losses scored in the previous trading session, with mining firms pushing higher on the back of rebounding metals prices and J Sainsbury PLC on the rise after a broker upgrade.

The FTSE 100 index UK:UKX +0.83% added 0.7% to 6,334.51, climbing back after a 1.6% decline on Thursday.

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Shares of J Sainsbury UK:SBRY +2.52% gained 1.6%, after Citigroup lifted the supermarket retailer to buy from neutral.

Additionally, the bank said it expects earnings from Tesco PLC UK:TSCO +0.27% TESO -1.96% , up 0.2%, and Wm. Morrison Supermarkets PLC UK:MRW +0.02% to disappoint, down 0.1%.

Mining firms were also among notable movers in London, as most metals prices moved higher. Shares of Kazakhmys PLC UK:KAZ +2.00% gained 3%, Antofagasta PLC UK:ANTO +2.25% rose 2.4% and heavyweight Rio Tinto PLC UK:RIO +0.82% AU:RIO -0.86% RIO -2.90% advanced 1.8%.

Supermarket chains are in the spotlight in London, after an upgrade for Sainsbury.

The broader U.K. stock market benefited from a pickup in risk appetite across Europe after the German Ifo Business Climate Index jumped to 107.4, topping forecasts for a 104.7 and fueling hopes that Europe’s largest economy is recovering. See: Euro jumps as German Ifo index posts February rise. .

Risk-sensitive banks were among advancers. Barclays PLC UK:BARC +1.37% BCS -2.60% added 1.2%, Lloyds Banking Group PLC UK:LLOY +1.63% gained 0.8% and HSBC Holdings PLC UK:HSBA +1.14% HBC -1.76% HK:5 -0.18% rose 0.7%.

Oil shares were also in positive territory, as oil prices inched higher. BG Group PLC UK:BG +1.21% rose 1.1%, Royal Dutch Shell PLC UK:RDSB +0.48% RDS.B -0.86% gained 0.5% and BP PLC UK:BP +0.36% BP -0.02% inched 0.1% higher.


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