The UK stock market rose 36.10 points or 0.6% this morning to 5,841.71 points, adding to the to the previous session’s gain of 0.2%, owing to banks and commodity stocks and rise in investor confidence to opt for riskier stocks due to the better-than-expected US corporate results.
Today, the market confidence was also boosted by the German ZEW survey which measures economic sentiment. The survey said that economic sentiment improved to -11.5 in October, from -18.2 the month before.
Banking stocks and mining groups were doing well by this afternoon as investors’ risk appetite increased. Lloyds, RBS, Randgold and Polymetal were among the highest risers on the UK stock market. Diversified mining group Rio Tinto rose after hailing a strong set of production results in the third quarter, with iron ore, copper, bauxite, alumina, and titanium dioxide output up year-on-year.
Sector peer Anglo American rose after disclosing that the illegal occupation of the Sishen Mine, owned by its subsidiary Kumbia Iron Ore, has been contained by police. The company said it can resume business soon.
Global engineering firm GKN fell after warning that macroeconomic conditions have deteriorated in recent weeks. Liberum Capital downgraded recommendation for IAG shares to ‘sell’, which led the airliner shares to drop.
The top ten gainers in today’s UK stock market are Lloyds Banking Group 42.16p +4.55%, ARM Holdings 593.00p +2.68%, Evraz 234.80p +2.44%, Polymetal International 1,152.00p +2.31%, Admiral Group 1,143.00p +2.14%, Royal Bank of Scotland Group 273.80p +2.13%, Randgold Resources Ltd. 7,700.00p +2.12%, Sage Group 308.30p +2.02%, Antofagasta 1,281.00p +1.91% and Kazakhmys 703.00p +1.88%.
The top ten losers in today’s UK stock market are GKN 205.40p -3.07%, International Consolidated Airlines Group SA 154.60p -2.15%, InterContinental Hotels Group 1,587.00p -1.06%, Tesco 307.60p -0.77%, Capita 734.50p -0.61%, CRH 1,114.00p -0.54%, Morrison (Wm) Supermarkets 266.20p -0.49%, Sainsbury (J) 356.50p -0.36%, Pennon Group 719.00p -0.35% and IMI 900.00p -0.33%.