London close: FTSE gains as miners shine

(Sharecast News) - London stocks ended in the black on Friday, with miners lending a helping hand as investors digested a raft of UK data releases.

The FTSE 100 closed up 0.6% at 10,816.56.

A survey released earlier showed the UK economy gained traction in August, underpinned by growth in the services sector.

The S&P Global flash UK PMI composite output index rose to 52.5 from 52.2 in July, coming in above the 50 mark that separates contraction from expansion for the second month in a row.

The services PMI business activity index ticked up to a six-month high of 52.8 in August, from 52.1 the month before. The flash UK manufacturing output index dipped to a five-month low of 51.2 this month from 52.9 in July.

Chris Williamson, chief business economist at S&P Global Market Intelligence, said: "The UK economy picked up a bit more pace in August, adding to signs that we should see solid economic growth of around 0.3% in the third quarter. The expansion is being helped by sunny weather and tech investment, though as expected we have seen some softening of growth in the manufacturing sector as precautionary stock building cools.

"This reflects easing concerns, for now, over the economic impact of the war in the Middle East. Businesses are feeling more upbeat than at any time since the war began. Job losses are also moderating."

Meanwhile, data from the Office for National Statistics showed that retail sales fell 0.5% in July, as expected, following a revised 0.7% rise in June, having been boosted a month earlier by hot weather and promotions. The ONS had previously estimated that sales rose 1% in June.

The ONS said clothing retailers reported earlier promotions bringing sales forward from July into June, as well as hot weather reducing footfall in July. On the year, retail sales grew 1.6% in July following 3.8% growth in June.

ONS chief economist Grant Fitzner said: "Retail sales increased in the latest three months, with all main sectors, apart from motor fuel, seeing growth.

"Some retailers told us that hot weather and promotions helped sales of outdoor products and items such as fans, with clothing and online sports merchandise also doing well."

Separate data from the ONS showed that government borrowing rose in July as spending growth outpaced receipts despite strong self-assessed income tax revenue.

Government borrowing was £1.8bn in July, up £0.7bn on the same month a year earlier and £2.3bn above the Office for Budget Responsibility's forecast. Borrowing for the financial year to July was £56.7bn, down £6bn on the same period a year earlier, but £2.3bn above the OBR forecast.

ONS chief economist Grant Fitzner said: "Public sector borrowing was lower in the financial year to date than in the same period last year, both in total and as a share of the economy. However, it is above the OBR spring forecast.

"Conversely, borrowing was slightly higher this month than in July last year, with spending growth outpacing higher receipts, including from self-assessed taxes which often feed in more strongly in July."

Elsewhere, a survey from GfK showed UK consumer confidence hit its highest level in two years in August.

In equity markets, JD Sports was the top gainer, having tumbled a day earlier after downgrading full-year profit guidance.

Miners Antofagasta and Anglo American rose as metals prices advanced. Precious metals miner Fresnillo and gold miners Hochschild and Endeavour also advanced in tandem with gold prices.

Gamma Communications shot higher as it confirmed it is in preliminary talks with private equity firm Waterland about a possible takeover that would involve telecoms services firm Giacom buying some of its business divisions.

Domino's Pizza pushed higher as Shore Capital upgraded its stance the shares to 'buy' from 'hold' as it said the company's first-half results were reassuring, with good sales momentum, robust profit delivery and strong cash generation.

Precision engineering group Hunting tumbled as it reported lower firsthalf revenues and earnings and trimmed its fullyear underlying earnings guidance.

Market Movers

FTSE 100 (UKX) 10,816.56 0.64%

FTSE 250 (MCX) 24,718.82 0.86%

techMARK (TASX) 6,168.40 0.48%

FTSE 100 - Risers

JD Sports Fashion (JD.) 84.54p 5.57%

Antofagasta (ANTO) 3,905.00p 5.37%

Autotrader Group (AUTO) 546.80p 3.68%

3i Group (III) 2,891.00p 3.51%

Croda International (CRDA) 3,433.00p 2.94%

Reckitt Benckiser Group (RKT) 5,142.00p 2.90%

Anglo American (AAL) 4,067.00p 2.55%

Lion Finance Group (BGEO) 13,090.00p 2.51%

IG Group Holdings (IGG) 1,334.00p 2.46%

Weir (WEIR) 2,816.00p 2.40%

FTSE 100 - Fallers

National Grid (NG.) 1,171.00p -1.31%

Melrose Industries (MRO) 470.30p -1.26%

Babcock International Group (BAB) 1,104.50p -1.03%

Shell (SHEL) 3,409.50p -0.89%

BAE Systems (BA.) 2,126.00p -0.84%

Legal & General Group (LGEN) 284.00p -0.80%

British American Tobacco (BATS) 4,131.00p -0.72%

Vodafone Group (VOD) 117.15p -0.72%

Experian (EXPN) 2,949.00p -0.57%

BP (BP.) 549.50p -0.49%

FTSE 250 - Risers

Gamma Communications (GAMA) 1,082.00p 11.60%

Hochschild Mining (HOC) 640.00p 7.02%

Hays (HAS) 72.15p 6.10%

Pan African Resources (PAF) 136.10p 5.59%

Domino's Pizza Group (DOM) 205.80p 5.54%

CMC Markets (CMCX) 743.00p 4.80%

Endeavour Mining (EDV) 4,680.00p 4.09%

Trainline (TRN) 197.50p 3.95%

Oxford Biomedica (OXB) 526.00p 3.75%

Dr. Martens (DOCS) 81.80p 3.68%

FTSE 250 - Fallers

Chemring Group (CHG) 570.50p -3.47%

Watches of Switzerland Group (WOSG) 680.00p -3.41%

Pets at Home Group (PETS) 212.80p -1.39%

Harbour Energy (HBR) 262.00p -1.13%

CVS Group (CVSG) 1,296.00p -0.99%

SSP Group (SSPG) 201.00p -0.99%

Aston Martin Lagonda Global Holdings (AML) 34.24p -0.98%

Diversified Energy Company (DI) (DEC) 1,072.00p -0.92%

JPMorgan Japanese Inv Trust (JFJ) 803.00p -0.86%

Cordiant Digital Infrastructure Limited NPV (CORD) 123.50p -0.80%