U.K. Stocks Rise for First Time This Week as ENRC JumpsTom Stoukas
U.K. stocks rose for the first time this week, rebounding from a two-month low, as a Chinese government economist forecast growth in the world’s second-biggest economy will improve this year.
Eurasian Natural Resources Corp. surged the most in 4 1/2 years after founder Alex Machkevitch said he may form a group to make an offer for the company. Kazakhmys Plc and Vedanta Resources Plc rallied more than 6 percent as a gauge of mining shares in the FTSE 350 Index climbed from the lowest level since
2009. Spectris Plc plunged the most in 24 years after the maker of production-testing gear cut its revenue-growth forecast.
The FTSE 100 Index added 42.92 points, or 0.7 percent, to 6,286.59 at the close of trading in London. The benchmark gauge has still fallen 1.5 percent this week as China’s economic growth missed forecasts, trimming it’s advance so far in 2013 to
6.6 percent. The broader FTSE All-Share Index increased 0.7 percent today, while Ireland’s ISEQ Index gained 0.4 percent.
“Clients who went bargain hunting in the mining space after the aggressive selloff earlier in the week have been rewarded this morning, as the sector bounces back strongly,” Matt Basi, head of U.K. sales trading at CMC Markets in London, wrote in a note.
The volume of shares changing hands in companies on the FTSE 100 today was 9.6 percent lower than the average of the past 30 days, data compiled by Bloomberg showed.
Zhu Baoliang, head of the State Information Center’s economic forecast department, said China’s economy may rebound in the second and third quarters of the year. China should stabilize money-supply growth and loosen fiscal policy to boost growth, Zhu said at forum in Beijing. The center is a research institute under the National Development and Reform Commission, China’s top economic planner.
ENRC surged 27 percent to 291 pence, the biggest jump since November 2008. Machkevitch said he is reviewing potential opportunities including forming a consortium with the Kazakh government and Alijan Ibragimov and Patokh Chodiev, who are also founding shareholders, to make an offer for the producer of iron ore in Kazakhstan.
Kazakhmys, Kazakhstan’s biggest copper miner, rallied 24 percent to 385.7 pence, rebounding from a four-year low. Vedanta, a producer of oil and metals in India, climbed 6.1 percent to 1,151 pence.
Anglo American Plc advanced 2.2 percent to 1,596.5 pence as the mining company said output of iron ore, copper and coal rose in the first quarter. Platinum production fell 2 percent.
The FTSE 350 Mining Index increased 1.4 percent after closing at the lowest level since September 2009 yesterday.
William Hill Plc advanced 4.7 percent to 409.1 pence, gaining for a fourth day. The gambling company said operating profit climbed 8 percent in the first quarter as revenue increased 15 percent.
Spectris sank 14 percent to 1,908 pence, its biggest drop since at least 1989. The company cut its outlook for revenue growth after first-quarter sales fell 9 percent.
Rival industrial stocks retreated. IMI Plc, the world’s largest maker of pneumatic controls, declined 1.6 percent to 1,174 pence, the lowest price since February. Renishaw Plc, a maker of precision tools, lost 5.7 percent to 1,551 pence for a sixth day of declines.