U.K. Stocks Advance as Anglo American, ARM Holdings ClimbJonathan Morgan
U.K. stocks advanced to a two-week high, rebounding from yesterday’s decline, as investor concern over the Ukraine crisis eased.
Anglo American Plc rose 3.6 percent, leading a gauge of London-listed commodity producers to a 16-month high. ARM Holdings Plc, which opened lower after posting a slowdown in royalty revenue, advanced the most since April 2013 as the mobile-phone chip designer said fees growth will accelerate. Royal Mail Group Ltd. dropped to its lowest price since its initial public offering in 2013 after saying its parcels revenue for the year will be lower than expected.
The FTSE 100 Index rose 66.9 points, or 1 percent, to 6,795.34 at the close of trading in London. The gauge dropped yesterday as investors weighed international tension over the downing of the Malaysian passenger jet in Ukraine. The FTSE All-Share index gained 1 percent today, while Ireland’s ISEQ index increased 1 percent.
European Union foreign ministers in Brussels debated how to exert pressure on Russia to remove obstacles to an investigation of how the flight came down over rebel-held territory. The EU needs a twin-track policy of pursuing diplomacy and taking tougher measures to add pressure on Russia, German Foreign Minister Frank-Walter Steinmeier told reporters before the meeting.
Anglo American gained 3.6 percent to 1,600.5 pence. Antofagasta Plc added 1.9 percent 831 pence. Rio Tinto Group climbed 1.4 percent to 3,337 pence. A gauge of mining companies on the FTSE 350 Index advanced 2.3 percent to the highest level since March 2013.
ARM Holdings rose 5.7 percent to 881 pence. The mobile-phone chip designer earlier fell as much as 2.7 percent after saying second-quarter royalty sales were little changed. The stock rebounded after Chief Financial Officer Tim Score royalties will return to “normal” growth levels, which in previous years has been 15 percent or more.
Royal Mail slipped 3.4 percent to 450 pence. The U.K. postal service said it will offset the shortfall in parcel revenue by implementing cost control measures and performing better in the letters business.