Kenmare Resources adds 9.5 percent in London

| November 4, 2010 | 0 Comments
Kenmare Resources adds 9.5 percent in London

European equities markets were higher Thursday on yesterday’s announcement by the US Federal Reserve that it will buy $600 billion in Treasury bonds between now and next June in an attempt to stimulate the US economy, and after both the Bank of England and the European Central Bank held interest rates steady for another month.

The FTSE 100 was up 1.98 percent to 5,862.79, a two-year high, in London, while the FTSE 250 was 1.29 percent higher to 11,016.5.

Miners were higher, led by Kenmare Resources (LSE: KMR) with a gain of 9.52 percent on the 250, while miners made up four of the top five winners on the 100, including Xstrata (LSE: XTA), which was up 7.05 percent while Eurasian Natural Resources (LSE: ENRC) was 6.93 percent higher, Kazakhmys (LSE: KAZ) added 6.79 percent and BHP Billiton (LSE: BLT) gained 6.58 percent.

The gain for BHP came after Canada stopped its hostile takeover of Potash Corp (TSX: POT), an acquisition that investors did not support.

The only decliner in the Basic Resources sector, which also includes miners, was paper manufacturer Mondi (LSE: MNDI), which fell 1.82 percent.

The best performer on the 100 was investment manager Man Group (LSE: EMG), which was up 14.62 percent after its earnings report exceeded expectations and on an increased target share price from Credit Suisse.

Declines on the 100 were led by aircraft engine manufacturer Rolls-Royce Group (LSE: RR), which dropped 5.04 percent after one of its engines exploded in flight on a Qantas A380 flight from Singapore to Sidney, Australia, although the plane landed safely.

The worst performer on the 250 was Cable & Wireless Communications (LSE: CW), which was down 13.06 percent on a disappointing quarterly report.

Homebuilders made up three of the five biggest gainers on the 250 as Taylor Wimpey (LSE: TW) added 8.36 percent, while Persimmon (LSE: PSN) was 7.64 percent higher and Barratt Developments (LSE: BDEV) gained 7.53 percent.

The retail sector was mixed, with JD Sports Fashion (LSE: JD) best as it added 2.51 percent, but William Morrison Supermarkets (LSE: MRW) was down 3.9 percent for the worst performance in the sector and Next (LSE: NXT) dropped 2.16 percent after JPMorgan Chase downgraded the clothing retailer from “overweight” to “underweight”.

Markets in the Asia-Pacific region were higher on the move by the US Federal Reserve to stimulate the US economy.

The Nikkei 225 added 2.17 percent to 9,358.78 in Tokyo, while the Topix index was up 1.64 percent to 816.33 and the Mothers market gained 0.85 percent to 349.27.

Fast Retailing (TYO: 9983) added 8.1 percent after sales at its Uniqlo clothing chain fell just 1 percent year-on-year in October, much better than its 24 percent sales decline in September.

Semiconductor-related groups were up, including a 2.5 percent gain for conglomerate Hitachi (TYO: 6501), which includes computer and semiconductor-related products among its interests, while Tokyo Electron (TYO: 8035) added 3.1 percent and Elpida Memory was up 5.1 percent.

Among carmakers, Toyota Motor (TYO: 7203) gained 2.3 percent and Suzuki Motor was up 3.7 percent.

In the electronics sector, consumer electronics group Sony Corp (TYO: 6758) added 0.5 percent, while camera and copier maker Canon (TYO: 7751) was 2.9 percent higher.

In the banking sector, Mitsubishi UFJ (TYO: 8306) gained 1.1 percent.

Elsewhere in the region, South Korea’s Kospi was up 0.34 percent to 1,942.5 while the Straits Times Index added 0.48 percent to 3,240.31 and in Australia the S&P/ASX200 was also 0.48 percent higher, to 4,745.3, while the Sydney Ordinaries gained 0.49 percent to 4,817.5.

The Taiex was up 0.77 percent to 8,357.85 in Taiwan, the Hang Seng added 1.62 percent to 24,535.65 in Hong Kong, the Shanghai Composite was 1.85 percent higher to 3,086 in China, and India’s Sensex set a record closing high as it gained 2.09 percent to 20,893.6, although it remained below its all-time intraday high of 21,206.77, set in January 2008.

New York markets were higher in afternoon trade as the Dow Jones Industrial Average added 1.62 percent to 11,396.8 while at the same time the S&P 500 was up 1.47 percent to 1,215.54 and the Nasdaq Composite was 1.2 percent higher to 2,570.68.

Crude oil and metals prices were higher on a lower US dollar, with gold up more than $43 in afternoon trade in New York.

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