Market Report: Anglo American is proving that there’s life in the old dog yet

The smallest monthly rise in US job creation for eight years should have boosted the markets

Miners have had a torrid from investors during the commodities crisis, but Anglo American is proving that there’s life in the old dog yet. The company was the top blue-chip performer for a second day running, soaring by 35.5p, or 11 per cent, to 363.35p yesterday.

On Thursday, it enjoyed a 20 per cent surge which lifted it out of the FTSE 100 relegation zone. The market value of last year’s biggest blue-chip faller had shrunk so much that it looked a safe bet for demotion in next month’s reshuffle, but it now looks set to avoid a move down to the FTSE 250 after recovering to £5bn.

Traders said the rise came as short-sellers continued to be squeezed out of their positions as they banked the profits already made on the share price slump.

The smallest monthly rise in US job creation for eight years should have boosted the markets, implying that the US Federal Reserve would have to peg interest rates for longer. However, it came as US unemployment dropped to 4.9 per cent, its lowest level since 2008. This created uncertainty, which is something investors hate, especially given concerns about the state of the global economy. That led the FTSE 100 to slip into the red, finishing the week down 50.07 points at 5,848.69.

The FTSE 250-listed software firm Micro Focus advanced by 9p to 1,349p as major shareholder Wizard, a consortium of investors including the US hedge fund Elliott, sold 28 million shares for £357m which was more than expected. The sale edges it closer to the exit, which will free up more shares for keen buyers.

Elsewhere, Premier Farnell’s $224m sale to Idex of its fire-fighting arm Akron Brass impressed investors and Premier’s stock rose by 7.25p to 106p.

On AIM, shares in ImmuPharma, a drugs company which counts Odey Asset Management and Aviva among its investors, fell by 3.5p to 25.5p after it raised £8.3m through a discounted placing and subscription with Lanstead Capital, a prominent small-cap backer which specialises in drip-feeding cash to companies in exchange for shares.

Shares in Strat Aero, the Aim-listed drone company which is targeting inspection services, rose by 0.5p, or 11 per cent, to 5.13p.