Vedanta, miners lead gains on 100

| September 27, 2011
Vedanta, miners lead gains on 100

European equities markets were higher Tuesday on optimism that leaders in the region will successfully resolve the Eurozone’s debt crisis, while gains were also helped by a report showing that US house prices fell less than expected in July, dropping 4.1 percent from prices in July 2010, against analyst expectations of a 4.4 percent decline.

The FTSE 100 added 4.02 percent to 5,294.05 and saw no decliners, while the FTSE 250 was up 2.93 percent to 10,127.1 on gains for miners and in the energy sector as prices for copper and crude oil advanced.

Four of the top five gainers on the 100 were from the mining sector, led by an 11.78 percent gain for Vedanta Resources (LSE: VED) as the best performer on the 100, while Antofagasta (LSE: ANTO) was up 10.74 percent, gold and silver miner Fresnillo (LSE: FRES) added 10.3 percent and Xstrata (LSE: XTA) was 10.01 percent higher.

The only decline in the mining sector came from natural resources royalty company Anglo Pacific Group (LSE: APF), which was down 1.34 percent.

There were no declines in the energy sector, while the biggest gains came from Essar Energy (LSE: ESSR), which added 10.16 percent, and from Premier Oil (LSE: PMO) with a gain of 10.02 percent.

The best performance on the 250 came from home credit specialist International Personal Finance (LSE: IPF), which was up 14.66 percent, while the two biggest declines on the index came from the travel and leisure sector as casinos and online gaming operator Rank Group (LSE: RNK) dropped 2.86 percent followed by restaurants and pubs operator Mitchells & Butlers (LSE: MAB), which was down 2.38 percent.

Morgan Crucible (LSE: MGCR), which makes body armor for the UK military) was up 9.61 percent on the possibility that it might be a bids target.

House builders were higher after JPMorgan Chase upgraded Bovis Homes Group (LSE: BVS) to “neutral” and Bellway (LSE: BWY) to “overweight”, with Bovis adding 1.81 percent and Bellway up 1.31 percent, while other house builders did even better, with Barratt Developments (LSE: BDEV) gaining 4.1 percent while Redrow (LSE: RDW) was 4.67 percent higher.

Banks were higher in London on the hopes for a solution to the debt crisis, led by Barclays (LSE: BARC) with a gain of 7.98 percent while Royal Bank of Scotland Group (LSE: RBS) was up 6.11 percent, Standard Chartered (LSE: STAN) added 6.04 percent, Lloyds Banking Group (LSE: LLOY) was 5.08 percent higher and HSBC Holdings (LSE: HSBA) gained 4.1 percent.

Banks also topped gains on the CAC-40, where Societe Generale (Euronext: GLE) added 16.81 percent, BNP Paribas (Euronext: BNP) was up 14.15 percent, Credit Agricole (Euronext: ACA) was 13.1 percent higher, and Natixis (Euronext: KN) gained 11.26 percent.

The FTSE Eurofirst 300 was up 4.33 percent to 936.41 while the IBEX added 4.03 percent to 8,531.9, the Dax was 5.29 percent higher to 5,628.44 and the CAC-40 gained 5.74 percent to 3,023.38.

Markets in the Asia-Pacific region were higher on hopes that European leaders will find ways to solve the region’s debt problems after reports that the European Central Bank is considering a return to buying some bonds among other steps, such as cutting interest rates and again offering 12-month loans to banks, as ways to help the European economy.

The Nikkei 225 was up 2.82 percent to 8,609.95 in Tokyo, while the Topix index added 2.7 percent to 748.55 and the Mothers market gained 2.28 percent to 383.48 as banks were helped by the optimism regarding the European economy, with Sumitomo Mitsui Financial Group (TYO: 8316) adding 3.4 percent while Mitsubishi UFJ (TYO: 8306) was up 4.3 percent.

Exporters were also helped by the hopes that Europe’s debt crisis could be solved, with consumer electronics manufacturer Sony (TYO: 6758) up 3.7 percent while carmaker Nissan Motors (TYO: 7201) was 4.5 percent higher and camera makers advanced as Canon (TYO: 7751) added 4.3 percent and Olympus Corp (TYO: 7733) gained 5.2 percent.

Tokyo Electric Power (TYO: 9501), however, was 6.2 percent lower an a media report that it could cost more than 3 trillion yen ($39.3 billion) to compensate victims of the meltdown at its Fukushima Dai-Ichi nuclear power plant.

Elsewhere in the region the Shanghai Composite was up 0.91 percent to 2,415.05, Singapore’s Straits Times Index added 2.7 percent to 2,725.91, the Sensex was 2.95 percent higher to 16,524 in India, Taiwan’s Taiex was up 3.09 percent to 7,089.95, Australia’s markets advanced as the Sydney Ordinaries gained 3.46 percent to 4,063.5 and the S&P/ASX200 added 3.64 percent to 4,004.6, the Hang Seng was 4.15 percent higher to 18,130.6 in Hong Kong and South Korea’s Kospi was up 5.02 percent to 1,735.71.

New York equities markets higher in midday trade as the Dow Jones Industrial Average added 2.4 percent to 11,309.2 at shortly before 1 p.m. local time, while at the same time the S&P 500 and the Nasdaq Composite were each 2.24 percent higher, to 1,189.05 and 2,572.97 respectively.

Prices for crude oil and metals were higher on the hopes for a solution to Europe’s debt problems.

November contracts for West Texas Intermediate Crude were up $3.46 to $83.70 per barrel in midday trade on the New York Mercantile Exchange, while Brent crude was last reported $2.29 higher to $106.23 per barrel on the ICE Futures Europe exchange in London.

Gold prices recovered from recent steep losses in New York trade, adding $63.30 to $1,658.10 per troy ounce at midday in New York, while silver was up $1.75 to $31.73 per troy ounce and copper gained 15 cents to $3.43 per pound.

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