U.K. Stocks Gain; Barclays, Schroders, Rio Tinto Lead Advance

U.K. stocks advanced after Barclays Plc said its capital ratio remained strong and higher metals prices boosted raw-materials companies.

Barclays, Britain’s third-largest bank, gained 4 percent. Rio Tinto Group, the world’s third-biggest mining company, advanced to the highest level in more than two years. Schroders Plc, Europe’s largest publicly traded asset-management company by market value, rose 5.5 percent after profit beat estimates.

The FTSE 100 climbed 25.23, or 0.4 percent, to 5,875.19 at the 4:30 p.m. close in London. The gauge rallied 3.5 percent last week to the highest level in two years as the Federal Reserve pledged to buy more securities to boost the recovery. The FTSE All-Share Index climbed 0.5 percent today, while Ireland’s ISEQ Index surged 1.9 percent as CRH Plc advanced.

“At least for now, the bulls have the upper hand,” said Giles Watts, the head of equities at City Index Ltd. in London. “Investors seem confident that last week’s glut of news has underpinned the market in the short term.”

The FTSE 100 is trading near its most expensive level relative to estimated earnings since April, according to data compiled by Bloomberg.

Barclays gained 4 percent to 297 pence after saying its capital ratio remained “strong” as quarterly profit declined 76 percent.

‘A Lot Better’

Barclays’s capital ratio “is a lot better than people will expect and should be taken really well by the market,” wrote Michael Helsby, an analyst at BofA Merrill Lynch, who has a “buy” rating on the stock. The Core Tier 1 ratio was 10 percent, unchanged from the first half, Barclays said.

Rio Tinto rose 2.8 percent to 4,454 pence, the highest level since July 2008. Xstrata Plc climbed 3.1 percent to 1,407.5 pence. Copper, lead, nickel and tin prices advanced on the London Metal Exchange.

Schroders rose 5.5 percent to 1,667 pence, the highest level in more than 12 years, after third-quarter pretax profit and net inflows beat expectations.

Randgold Resources Ltd., a producer of the metal in West Africa, rallied 4.6 percent to 6,265 pence, after saying third- quarter profit more than doubled after prices of the precious metal rose.

InterContinental Hotels Group Plc sank 5.2 percent to 1,140 pence as the owner of the Holiday Inn brand said third-quarter operating profit fell 7 percent to $115 million, excluding exceptional items.

Yell Group Plc slumped 21 percent to 12.37 pence. The publisher of the U.K.’s yellow pages directories said first-half sales dropped 8.9 percent to 895.7 million pounds ($1.45 billion). The company also said Michael Pocock will take over as chief executive officer from Jan. 1.

In Dublin, CRH gained 4.4 percent to 14.47 euros after saying the pace of revenue decline slowed in the third quarter.

To contact the reporter responsible for this story: Adam Haigh in London at ahaigh1@bloomberg.net.

To contact the editor responsible for this story: David Merritt at dmerritt1@bloomberg.net.

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