Market Report: Vedanta Resources leaps as it hits production targetsComments Off on Market Report: Vedanta Resources leaps as it hits production targets
It’s a sign of the times when a miner merely meeting expectations sends a share price soaring.
That was the case for FTSE 250 base metals and oil group Vedanta Resources, which leapt 53p or 10% to 583p, as it revealed production rose across the board in the second quarter as planned, while its debt is expected to fall below $8 billion (£5.21 billion) by the end of the quarter, reassuring nervy investors.
The recent rally from commodity prices has helped the stock jump 40% since the start of the month.
The soaring zinc price today — up as much as 8.5% played a major part in the stock’s rise after Glencore unveiled plans to slash its production of the metal by a third.
Mining dominated the agenda as steelmaker Alcoa – which traditionally kicks off the US earnings season — disappointed by warning of lower demand from China.
Nonetheless, miners continued their recovery with Anglo American up 30.7p to 708.2p, Mexican silver producer Fresnillo up 28p at 732.5p, and BHP Billiton 30p better at 1175p.
The oil-price renaissance also continued — as Brent crude gained 46 cents to $53.51 a barrel — boosting BP 4.25p to 393.2p and keeping the FTSE 100 on track for its eighth straight day of gains, up 33.51 at 6408.33 — its highest in almost two months.
Admiral accelerated 50p to 1580p as car-insurance premiums rose 4.8% in the third quarter — the biggest increase since 2010 — while rivals RSA, up 2p at 420p, Direct Line, up 1.4p to 378.2p, and esure, 1.4p firmer at 241.4p, also benefited.
It also bodes well for Hastings Insurance’s imminent flotation.
Ladbrokes climbed 0.4p to 108p as it signed a £1.35 billion lending deal with banks to fund the Gala Coral merger which will create Britain’s biggest bookie.
Online ad firm Adgorithms crashed by 70p to 56p following a huge profit warning just four months after it was floated on AIM at 133p by Liberum Capital — an update described by Peel Hunt as
Another beaten-up ad-tech company, Blinkx, edged up 0.25p to 28.25p as it confirmed first-half trading was in line with expectations.
Renewable Energy Generation meanwhile swept 12.75p or 34% higher to 50p after receiving a takeover offer for its trading business, which has been hit by the Government’s slashing of subsidies for renewable-energy firms.