Market Report: Improving news digs miners out of trouble

Miners managed to dig themselves out yesterday after weeks of being in the red as the US bellwether Alcoa reported better than expected results. The aluminium producer is the first to report earnings in the US each quarter, and beat expectations this time around. This, combined with better economic news across the board, a rise in metal prices and news of falling Chinese production costs sent metal miners soaring.

The iron ore miner Vedanta Resources was top of the leaderboard – up 86p, or 8.5 per cent, to 1,094p. Fellow iron ore specialist Ferrexpo, on the mid-tier index, reported a 21 per cent rise in output during the second quarter. Deutsche Bank's analysts were so keen they rated it a buy with a target price of 360p for shares that were 16.9p ahead at 155.6p.

The mining giant Anglo American was in focus after analysts at Macquarie Bank ran the numbers on a potential break-up of the group. Macquarie thinks that if Anglo sold off its 80 per cent stake in Anglo American Platinum and its De Beers diamond business and brought in a partner at its troubled Minas-Rio mining project it would add more value for its long-suffering shareholders.

Macquarie's experts think new chief executive Mark Cutifani "has his work cut out for him to 'pay back' Anglo shareholders for the last five to six years of value destruction".

Separately, its De Beers subsidiary – the world's largest diamond producer – averted strike action in South Africa this week when it agreed to increase pay by 9 per cent. Anglo added 37p to 1,281p.

The FTSE 100 continued the previous day's gains. It soared another 63.01 points to 6,513.08, back up to levels seen in early June. Tobi Morris, a senior sales trader at the spread-betting group CMC Markets, said: "Weaker than expected industrial production numbers out of the UK yesterday failed to take the shine off stocks, with the FTSE securing further gains."

A consistent riser was Royal Bank of Scotland after a strong performance on Monday, when it finished the day up 4.3 per cent. Yesterday it added another 15.6p to 304.4p as news that a "good" and "bad" bank split is looking less likely helped it to continue the run. Goldman Sachs ran the numbers factoring in if it did have to split and raised its rating to "buy" from "neutral" with a 370p price target. It argued that if the Government did proceed with a split of the tax-payer-owned bank it would at the very least cure the problems of "muted core returns and elevated uncertainty".

The high-street bellwether Marks & Spencer reported yet another fall in clothing sales and lost 6.5p to 453.2p. On the mid-cap index, a positive update from the engineering data and design IT systems specialist Aveva helped it to charge ahead 310p to 2,578p.

The gold producer Centamin produced another record quarter, with 93,624 ounces of gold produced, but it slipped 1.6p to 36.76p.

A new home needs a new floor, so the City was betting that a tiles and flooring specialist will benefit from the latest housing boom. The retailer Topps Tiles was chosen as a top pick by Goldman Sachs's analysts because, they said, an "increase in housing turnover" will mean people will spend more on tarting up their homes. They said the 320-strong chain has strengthened its position in the "floor covering niche", and added that the risk from "online disruption" is low because people still want to buy floor coverings and tiles from shops, not over the internet. The small-cap retailer laid down a 5.25p gain to 77.5p.

The Aim-listed crowd-sourcing specialist blur Group reported its most successful quarter, with a 125 per cent increase in the number of new projects and a 315 per cent increase in the total value of the projects added at $9.41m (£6.33m). It produced a 40p rise to 242.5p.

In London's biggest technology float this year Keyword Studios, a technical services provider to the video games industry, plans to raise £28m on Aim.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Customer Service Advisor

£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....

Recruitment Genius: Compliance Manager

£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...

SThree: Talent Acquisition Consultant

£22500 - £27000 per annum + OTE £45K: SThree: Since our inception in 1986, STh...

Day In a Page

John Palmer: 'Goldfinger' of British crime was murdered, say police

Murder of the Brink’s-MAT mastermind

'Goldfinger' of British crime's life ended in a blaze of bullets, say police
Forget little green men - aliens will look like humans, says Cambridge University evolution expert

Forget little green men

Leading evolutionary biologist says aliens will look like humans
The Real Stories of Migrant Britain: An Algerian scientist adjusts to life working in a kebab shop

The Real Stories of Migrant Britain

An Algerian scientist struggles to adjust to her new life working in a Scottish kebab shop
Bodyworlds museum: Dr Gunther von Hagens has battled legal threats, Parkinson's disease, and the threat of bankruptcy

Dying dream of Doctor Death

Dr Gunther von Hagens has battled legal threats, Parkinson's disease, and the threat of bankruptcy
UK heatwave: Temperature reaches 39.8 degrees on Central Line - the sweatiest place in London

39.8 degrees recorded on Tube

There's hot (London) and too damn hot (the Underground). Simon Usborne braved the Central line to discover what its passengers suffer
Kitchens go hi-tech: From robot chefs to recipe-shopping apps, computerised cooking is coming

Computerised cooking is coming

From apps that automatically make shopping lists from your recipe books to smart ovens and robot chefs, Kevin Maney rounds up innovations to make your mouth water
Jessie Cave interview: The Harry Potter star has published a feminist collection of cartoons

Jessie Cave's feminist cartoons

The Harry Potter star tells Alice Jones how a one-night stand changed her life
Football Beyond Borders: Even the most distruptive pupils score at homework club

Education: Football Beyond Borders

Add football to an after-school homework club, and even the naughtiest boys can score
10 best barbecue books

Fire up the barbie: 10 best barbecue books

We've got Bibles to get you grilling and smoking like a true south American pro
Wimbledon 2015: Nick Bollettieri - Junk balls and chop and slice are only way 5ft 1in Kurumi Nara can live with Petra Kvitova’s power

Nick Bollettieri's Wimbledon Files

Junk balls and chop and slice are only way 5ft 1in Kurumi Nara can live with Petra Kvitova’s power
Ron Dennis exclusive: ‘This is one of the best McLaren teams ever – we are going to do it’

‘This is one of the best McLaren teams ever – we are going to do it’

Ron Dennis shrugs off a poor start to the season in an exclusive interview, and says the glory days will come back
Seifeddine Rezgui: What motivated a shy student to kill 38 holidaymakers in Tunisia?

Making of a killer

What motivated a shy student to kill 38 holidaymakers in Tunisia?
UK Heatwave: Temperatures on the tube are going to exceed the legal limit for transporting cattle

Just when you thought your commute couldn't get any worse...

Heatwave will see temperatures on the Tube exceed legal limit for transporting cattle
Exclusive - The Real Stories of Migrant Britain: Swapping Bucharest for London

The Real Stories of Migrant Britain

Meet the man who swapped Romania for the UK in a bid to provide for his family, only to discover that the home he left behind wasn't quite what it seemed
Cheaper energy on the way, but it's not all sunshine and rainbows

Cheaper energy on the way, but it's not all sunshine and rainbows

Solar power will help bring down electricity prices over the next five years, according to a new report. But it’s cheap imports of ‘dirty power’ that will lower them the most