LONDON (ShareCast) - 1630: Close A late surge lifted the Footsie above the 5,300 mark on Monday as Londons benchmark rebounded after hitting its worst level in six months on Friday. The financial and resource sectors, two categories that were heavily sold off on the back of last weeks risk-off attitude, were among the best performers today. Vedanta, Man Group, RBS and Polymetal were among the highest risers. Defensive stocks were sold off as investors shifted into riskier assets Centrica, United Utilities, Severn Trent and SSE finished in the red. FTSE 100 finished up 37 at 5,304.
1452: Stocks are holding near their best levels of the day, held aloft by the rise seen in shares of banks and miners. That following last week´s pummeling and with the Footsie having halted its retreat near its 200 day moving average. Out on the wider market, Pursuit Dynamics´s share price has collapsed by 78% after a deal to supply P&G fell through. Also of interest, PIMCO´s El-Erian is being cited as having said that a Greek 'euro-exit' is inevitable. FTSE 100 up 34 to 5,302.
1309: The biggest thing you need is forcefully injecting enough capital into the banking system. The source of current problems is not Greece ... The source of current problems in the Eurozone is that various financial exposures we all have in the interbank market are not yet resolved because certain financial institutions are insufficiently capitalised, insufficiently disciplined," Bank of England policy-maker Adam Posen said today in Tokyo at a conference hosted by the Columbia Business School.
1157: Footsie is on or around its high-point for the day and back above 5,300, thanks to investors' rediscovered enthusiasm for mining stocks. British Land is wanted after decent full year results this morning. Peel Hunt described the results statement as 'muted', much like that from fellow property giant Land Securities recently. Almost all of the net asset value (NAV) and property uplift was from the first half of the fiscal year, Peel hunt notes. Comparing British Land (BL) and Land Securities, Peel Hunt said: 'Both majors develop actively, with BL actually ahead on London pre-lets, but its approach is more typically portfolio refinement than radical rebuild. Until Lands fireworks start, the two NAV discount ratings may remain close (at around 20 per cent prospective); these essentially ex-growth shares may weaken slightly within the miserable general market.' FTSE 100 is up 35 at 5,303.
1134: The rise in shares of Barclays is being attributed to news that it intends to dispose of its stake in Blackrock. European equities are holding higher for the most part, although with some exceptions such as in Spain and Italy (many companies´ shares in these two markets are today trading ex-dividend). Of possible interest, Spain´s economy minister, Luis de Guindos, has said that Bankia may need up to another 7.5bn euros in bad-loan provisions. He added that the country´s economy is expected to contract at an 0.3 per cent pace in the second quarter. According to daily El Mundo the IMF is to publish a report showing that 70% of Spain´s banking system could withstand a recession. The Fed´s Lockhart has hit the wires indicating that the option of further QE should not be dismissed. FTSE 100 up 32 to 5,300.
1037: The Footsie is 26 points higher at 5,294 with financials and miners among the best performers. Man is still leading the advance after announcing that it is to buy FRM Holdings. RBS, Standard Chartered, Barclays and Lloyds are making gains as the banking sector rebounds after having tumbled six per cent over the last week. Mining stocks are making gains, possibly on speculation that China could announce more stimulus measures soon to counter a slowdown after Premier Wen Jiabao called for 'putting stabilising growth in a more important position'.
1005: Having briefly regained 5300, Footsie turned back, though it remains in positive territory. Talk of a petrol price war is suppressing appetite for supermarket shares, with Tesco and Morrisons both among the worst performers. FTSE 100 is up 29 at 5,297.
0935: The top-share index is partaking of the 'nice' and somewhat unexpected bounce in European equities this morning. That on the back of what appears to be a greater emphasis on stimulating, or giving freer reign, to internal demand coming out of the G-8 summit this past weekend. Also worth noting, there are some reports of EU pressure on Spain to accept an IMF credit-line and of possible problems at a large French mortgage lender. In any case, some strategists, such as those at JP Morgan, remain unconvinced: according to different reports their recommendation to investors is to sell into any bounces in European equities. FTSE 100 up 30 to 5,300.
0832: Hedge fund manager Man Group, which has lost two-thirds of its value over the last year, is the unlikely leader of an advance by the Footsie this morning. The group has been buoyed by news it is to buy FRM Holdings, a global hedge fund research and investment specialist. Miners and bankers are also contributing to the bounce in the benchmark's after the it retreating on every single day of last week. With a little bit of appetite for risk returning to the market, defensive stalwarts such as supermarkets Sainsbury and Tesco, plus utilities such as National Grid, United Utilities and SSE, are out of favour. FTSE 100 is up 18 at 5,286.