By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Resource firms rose in London on
Thursday after Chinese manufacturing data pointed to the best level
in seven months, while Shire PLC rallied after lifting its
full-year guidance.
The FTSE 100 index climbed 0.6% to 6,713.18, marking the highest
closing level since May.
The gain came as Chinese data pointed to a continued recovery in
the country's manufacturing sector. HSBC's "flash" reading of
October's manufacturing purchasing managers' index (PMI) rose to a
seven-month high of 50.9, up from September's final reading of
50.2, though it remained just below the Chinese government's own
PMI, which hit 51.1 last month.
Mining firms and oil companies, which tend to rise on upbeat
growth indications from China, posted gains in London after the
data. Shares of Fresnillo PLC added 2.8%, Vedanta Resources PLC
gained 2.2%, BHP Billiton PLC (BHP) rose 1.4% and Rio Tinto PLC
(RIO) climbed 0.5%.
Separately, BHP said it expects global commodities demand to
grow 75% over the next 15 years driven in part by continued
urbanization in emerging economies. Metals prices were mostly
higher.
Kazakhmys PLC rose 5.4% after the miner said ore extraction
rates rose 6% in the first nine months of the year.
Among oil firms, shares of Royal Dutch Shell PLC (RDSB) added
0.8% and BG Group PLC put on 0.7%.
Among other notable movers in London, shares of Shire jumped
9.3% after the pharmaceutical firm raised its 2013 guidance as it
reported a 22% rise in net profit.
Aberdeen Asset Management PLC rallied 5.8% after the investment
firm confirmed it is in discussions with Lloyds Banking Group PLC
(LYG) regarding a possible acquisition of Scottish Widows
Investment Partnership. Shares of Lloyds rose 2.8%.
Rolls-Royce Holdings PLC gained 2.6% after signing an
oil-rig-equipment contract worth around 22 million pounds ($35.6
million).
Shares of WPP PLC gained 0.9% after the advertising giant posted
better-than-expected organic revenue growth in the third
quarter.
On a more downbeat note in London, shares of Sports Direct
International PLC dropped 3.8% after Mike Ashley sold GBP106
million worth of shares in the company he founded 30 years ago. The
sold stake represents 2.7% of the issued share capital of the
retailer.
Outside the main index in London, Debenhams PLC slid 8.8% after
the retail chain reported a 2.7% drop in full-year pretax profit
and said conditions had been "very difficult" through the year.
Ophir Energy PLC surged 9.1% after the oil and gas explorer said
it may sell part of its interest in three gas fields in
Tanzania.
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