The UK stock market inched higher today gaining 0.1% to 5,903.39, with the miners and the all-important BP-Rosneft deal which is touted to create the world’s biggest oil producer.
Oil giant BP climbed 0.5% higher on Monday after it agreed to sell its 50% stake in Russian oil producer BP-TNK to state-run Rosneft in a deal consisting of two tranches. BP will use $4.8 billion (£3 billion) in cash to acquire a further 5.66% stake in Rosneft from the Russian government at a price of $8 a share. BP will hold $12.3 billion (£7.66 billion) in cash from the deal.
Randgold Resources Ltd. added 2.3%, Anglo American surged 2% and Antofagasta increased 1.5%. Rio Tinto and BHP Billiton gained 0.4% and 0.3% respectively. Evraz, a steelmaker, rose 3% to 255.7 pence. African Barrick Gold Plc gained 1% to 482.2 pence. African Barrick Gold Plc rose 1% to 482.2 pence, following the Kenyan Competition Commission’s approval of its acquisition of Aviva Mining (Kenya) Ltd. from Aviva Corp.
The UK stock market also saw London banks charting an upward course today, tracking gains for the sector across Europe. Spain’s Prime Minister Mariano Rajoy’s win in a regional election in Galicia, fueled hopes the country will soon make an official bailout request, spreading a positive outlook. Barclays increased 1.8%, Lloyds Banking Group added 1.8% and HSBC Holdings gained 0.6%.
Rolls-Royce Holdings picked up 0.2% after it said it won a contract to power the US Navy’s future fleet of hovercrafts. Aggreko dropped 1.8% after HSBC Holdings downgraded the stock to underweight from neutral. The supplier of temporary-power solutions fell 7.2% on Friday, as it said that exchange-rate fluctuations and increased bad debt provisions are expected to hurt full-year profit by 2.5%.