By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Mining firms posted solid gains in
London on Thursday on an increase in commodity prices, while
Associated British Foods PLC rallied after a well-received trading
update.
The FTSE 100 index rose 0.6% to 6,543.41, closing at the highest
level since June 4.
Among biggest gainers in the index, shares of Associated British
Foods PLC jumped 5.1% after the food ingredients maker and owner of
Primark clothing stores said revenue for the 40 weeks to June 22
was up 9%. Additionally, the company said it is on track to achieve
good progress in full-year earnings.
Mining firms also showed positive moves as most metals prices
rallied. Gold and silver had good days, after U.S. Federal Reserve
Chairman Ben Bernanke said interest rates will remain low to boost
economic growth. The comments sent the greenback lower, which
helped dollar-denominated commodities such as gold.
Among London's precious miners, Randgold Resources Ltd. jumped
7.2% and Polymetal International PLC surged 8.3%, while silver
miner Fresnillo PLC soared 13%.
Among other miners, Anglo American PLC gained 5.4%, Rio Tinto
PLC (RIO) added 4.6% and BHP Billiton PLC (BHP) climbed 4.6%.
On a more downbeat note in London, shares of G4S PLC dropped
5.6% after U.K. Justice Secretary Chris Grayling asked the Serious
Fraud Office to investigate the security firm for overcharging the
government for electronic tagging for criminals.
G4S said in a statement that it is conducting its own review
with external advisers and "is not aware of any indications of
dishonesty or misconduct."
Serco Group PLC was also suspected of overcharging, but agreed
to take part in a forensic audit. The shares slumped 7.9%.
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