INVESTORS paused for breath yesterday after the FTSE 100 Index’s best month in six years.
The index climbed 8.1 per cent last month – pushing the blue-chip index into bull market territory – amid improving confidence in banks and a greater appetite for risk.
But traders began May tentatively, with many world markets closed for the May Day holiday. The FTSE 100 eventually finished 0.5 points down at 4243.2 after trading in a narrow range for much of the session.
On Wall Street, the Dow Jones Industrial Average was coming off its best month in nine years, but made marginal gains as mixed economic and corporate news gave further grounds for caution.
In London, miners were on the front foot amid positive broker comment over the sector and rising base metal prices.
A clutch of miners topped the top-flight risers board, led by Kazakhmys, up 55p to 590p. Eurasian Natural Resources gained 25p to 620p, Xstrata cheered 31p to 638.5 and Vedanta Resources rose 56p to 1130p after Citi brokers lifted their target price on the stock.
Among the banks, Royal Bank of Scotland was 2.2p better off at 44p, as Deutsche Bank brokers were the latest to make positive noises on the sector this week.
But Barclays’ strong recent run came to an end with a 2.5p fall to 279p, as markets mulled the potential for a further clampdown on lucrative investment banking following a critical report by MPs.
Lloyds Banking Group, on which Deutsche held its sell rating, shed 2.4p to 109.6p.
Property firm Land Securities was among the leading fallers following reports the firm will launch a venture capital arm to invest in new retail chains. Land Securities was 14.5p down at 548p, or three per cent.
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