For the 2nd straight day, UK stocks have advanced ahead, today’s gain mainly being helped by surge of mining companies. Among the major mining companies, Lonmin Plc. went ahead despite the falling platinum supplies after the Deutsche Bank raised its recommendation for the 3rd biggest Platinum producer in the world; whereas, Eurasian Natural Resources reported higher production data for Ferrochrome and Iron-ore than the expectations set by the analysts. Eurasian’s gain was actually the biggest in last 4 and half months. Apart from these two, Hargeaves Lansdown also increased to a record high figure as its first half profit figures exceeded the initial forecasts. Eurasian shares surged ahead by 9.1% today, whereas, the shares of Hargreaves Lansdown increased by 11% to 817 pence per share. This marks the highest price for the company since its initial public offering, held in way back 2007.
The benchmark gauge for the UK stocks, the FTSE 100 Index increased by 0.2% or 12.58 points. The gauge is currently at 6295.34. Incidentally, on 4th February, the gauge decreased by 1.6%, mainly affected by the high jump of the Italian and Spanish bond yields, resulted because of the political uncertainties in these regions.
According to the Chief Investment Officer of Cazenove Capital Management, Richard Jeffrey, the markets are kind of nervous now and that’s pretty obvious because of the weak conditions experienced in past. However, currently, some investors are predicting a stronger growth for future and the same has been a driving force off late for the UK stocks.
The broader FTSE All Share Index increased by 0.3%, however, the benchmark gauge of Ireland, the ISEQ Index declined by 0.2%. Today, the total volume of shares that changed hands was 12% more than the last 30 days’ average.
Despite the gain among mining stocks, three of the 4 biggest stocks listed in the FTSE 100 Index by weight, Vodafone Group, BP and Royal Dutch Shell fell today, thereby limiting the gains.
Among other companies, Schroders Plc. jumped up by 2.9% and is at 1999 pence per share. Morgan Stanley upgraded its shares to overweight and this attributed highly to the share prices of the company. Apart from that, the earnings estimates were also increased by the brokerage. Man Group Plc., on the other hand, saw an increase of 4.8% and each share is priced at 95.1 pence now.