Monday, 17 July 2017

Miners drive FTSE higher, Weir Group and Carillion lead mid-caps

Britain's major share index started the week with solid gains driven by basic resource firms, while a government contract win by crisis-hit construction firm Carillion gave it some respite from heavy losses sustained last week. 


Miners pushed the FTSE 100 .FTSE up 0.4 percent, while mid-caps outperformed, rising 0.6 percent with Weir Group (WEIR.L) and Carillion (CLLN.L) shining. 

ITV (ITV.L) was the top blue-chip gainer, up 2.6 percent after the broadcaster said it had appointed Carolyn McCall, boss of airline EasyJet (EZJ.L) as its next chief executive.

Anglo American <AAL.L, Glencore (GLEN.L), and Antofagasta (ANTO.L) were leading miners higher, supporting index gains as metals prices rose on an upbeat second quarter for China's economy and a weaker dollar. [nL3N1K82P1] 

Leading the mid-caps .FTMC was troubled construction and support services firm Carillion (CLLN.L), whose shares gained as much as 13 percent after its joint venture with Eiffage and Kier was awarded two contracts worth 1.4 billion pounds for high speed rail project HS2. [nL3N1K82U8]
Carillion shares had lost 70 percent of their market value last week. 

Balfour Beatty (BALF.L) also won two HS2 contracts among the $8.6 billion worth of contracts awarded by the government, sending its shares up 2.8 percent.

Weir Group (WEIR.L) led European gainers, up 9.2 percent and hitting its highest level since May, after the firm said it expected its oil and gas unit performance to beat analysts' expectations due to strong drilling activity in North America.

Oil services group Hunting (HTG.L) also gained 3.4 percent, while Tullow Oil (TLW.L) rose 3.5 percent. 

Pearson (PSON.L), meanwhile, fell to the bottom of the FTSE, down 1.3 percent after Berenberg trimmed its target price on the stock after the company partially sold its stake in Penguin Random House.

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