The great pensions unlocking bonanza has begun and investors are keen to get a slice.
Aberdeen Asset Management soared to the top of the Footsie, up 19.7p at 485p, after the investment giant launched four new low-cost funds pitched at retirees keen on dipping into their savings. Just Retirement jumped 7.4p to 175.9p on hopes it too could launch similar products. Burberry was on the march as both JP Morgan and RBC Capital Markets forecast strong numbers from the brand when it updates the market next week. RBC expects a 9 per cent rise in second-half revenue. Vague bid speculation was also about and all of this helped Burberry improve 49p to 1,792p.
InterContinental Hotels Group rose 63p to 2,737p as Jefferies tipped it for a takeover. The broker believes hoteliers will look to buy growth as the market peaks and IHG could be a prime target. Miners were in the doldrums as Credit Suisse, Investec and Numis all admitted their already bearish assumptions for the industry are still too optimistic. BHP Billiton dipped 16p to 1453p and Anglo American slid 2.5p to 1,024p.
Temporary power provider Aggreko slipped 52p to 1543p amid fears about how escalating tension in Yemen will affect its business there. Rival APR Energy, down 18.5p at 358.5p, has already been forced to stop operations in the country.
The FTSE 100 rose 77.95 points to 7,015.36.
Investors piled into the penny stocks working Horse Hill near Gatwick after an appraisal of the site claimed there could be as much as 100bn barrels worth of oil buried there. UK Oil & Gas leapt 1.87p to 2.97p, Alba Mineral Resources soared 0.46p to 0.82p, Stellar Resources jumped 0.2p to 0.62p, Evocutis climbed 0.05p to 0.25p, Solo Oil improved 0.14p to 0.72p and Doriemus shot up 0.04p to 0.12p.
The woes continue to mount for cash-starved oil and gas operator Afren. The company announced today that it is using a 30-day grace period to delay payment of $12.8m worth of interest due on bonds. Afren dipped 0.24p to 3.06p.Reuse content