Investors kicked off a new year of trading in style today by sending the FTSE 100 Index soaring to a new four-year high.
Miners triggered the rise as traders clamoured for their shares against a backdrop of robust commodity prices, while the row between Ukraine and Russia over gas supplies was a fillip for the oil firms such as BP.
They ensured the FTSE closed at levels not seen since the summer of 2001 – up 62.7 points at 5681.5.
Mining stocks that have featured among the top picks of City brokers for 2006 made a positive start to the year – led by Kazakhmys which lifted 35.5p at 809p to reach its highest level since floating in October.
Xstrata – included in a selection of most attractive stocks by Dresdner Kleinwort Wasserstein – followed it higher with a 60p gain to 1420p.
The row over fuel supplies in eastern Europe encouraged traders to buy more of BG Group, which rose 3% or 20p to 594.5p to close at another all-time high.
Elsewhere in the sector, Cairn Energy rose 37p to 1957p, Royal Dutch Shell progressed 59p to 1917p and BP ticked 18p higher to 637p.
Also in positive territory was mobile phone giant Vodafone as it looked to improve on last year’s disappointing performance in its share price. The stock lifted 1.5p to 127p after a string of broker tips over New Year.
Retailers were proving less popular, with Marks & Spencer down 8p to 497p, Tesco off 6.25p to 325.25p and Kingfisher sliding 2.75p to 234.5p.
It came on the back of worries over the post-Christmas sales, although Dixons owner DSG International bucked the trend to move 2.5p up to 166.25p.
Elsewhere, Electra Investment Trust was up more than 7% or 84p to 1204p after it agreed to sell its UK marine management business Inchcape Shipping Services to Dubai for £165m.
William Hill shares surged 4% or 22.5p to 558p after the bookie said profits for last year would be above expectations as it looked forward to a strong 2006 buoyed by betting on the football World Cup in Germany.
The recent rally by industrial materials group Cookson was extended today by the sale of its electronics unit SCS for £32.1m.
The deal meant its strategy of raising £100m by selling non-core businesses was achieved a year ahead of schedule and contributed to Cookson shares rising 13.5p to 438.5p.
And investors overlooked a worsening sales performance at chocolate maker Thorntons to take heart from ongoing takeover talks.
Shares in Thorntons rose 5.5p to 161.5p even though total sales of
£109.5m during the 26 weeks to Christmas Eve were 6.5% worse than last year.
The biggest FTSE risers were Kazakhmys up 35.5p at 809p, Xstrata ahead 60p at 1420p, Johnson Matthey up 50p at 1462p and BG Group ahead 20p at 594.5p.
The biggest fallers were Tesco down 6.25p at 325.25p, Marks & Spencer off 8p at 497p, GUS down 16p at 1016p, Wolseley off 15p at 1210p.
References: EGi News 03/01/06
