FTSE gains as Kazakhmys leads miners higher

* FTSE 100 up 0.9 pct

* Miners rally, Kazakhmys leads after results

* U.S. weekly jobless claims due at 1230 GMT.

By Tricia Wright

LONDON, Aug 26 (BestGrowthStock) – Strong mining stocks, buoyed by
Kazakhmys’s (KAZ.L: ) first-half results, helped drive Britain’s
top share index higher early on Thursday after it fell in the
previous session.

By 0820 GMT, the FTSE 100 (.FTSE: ) was up 45.28 points, or
0.9 percent, at 5,154.68, after it fell to a seven-week closing
low on Wednesday — down 46.55 points, or 0.9 percent, at

Kazakhmys grabbed the top spot on the blue-chip leader
board, adding 3.3 percent, after the Kazakh copper miner posted
an expected 130 percent rise in underlying first- half earnings
per share on higher prices. [ID:nLDE67O1Q5]

Evolution Securities hiked its target price for the firm to
1,295 pence from 1,185 pence, while keeping its “add” rating.

Sector peers (.FTNMX1770: ), which were dented on Wednesday
along with metals prices after gloomy U.S. economic data,
enjoyed a rally.

Xstrata (XTA.L: ) was the second highest blue-chip riser, up
2.5 percent. Its major shareholder Glencore International
[GLEN.UL], the Swiss mining and commodities trading giant,
posted strong first-half results boosted by strong metal prices.

It was a similar story with energy stocks (.FTNMX0530: ) and
banks (.FTNMX8350: ), which recovered after falls in the previous

U.S. stocks (Read more about the stock market today. ) staged a comeback on Wednesday, breaking a
four-day losing streak by major indexes, as key technical
support triggered bargain-hunting that offset weak economic

Data showed new single-family home sales slumped to a record
slow pace in July and orders for manufactured durable goods rose
far less than anticipated. [ID:nN25121445].

“The bears are looking a bit nervously at the fact that the
U.S. housing figures were so bad but the market still reacted
strongly into the close,” Mic Mills, head of electronic trading
at ETX Capital, said.

“It should also be noted that volumes are still light.”


Investors had a wedge of earnings reports to wade through on

Diageo (DGE.L: ) was down 0.4 percent, after the world’s
biggest spirits reported full-year results, with Credit Suisse
cutting its 2011 earnings per share forecast for the company
along with its price target. [ID:nLDE67P0GU]

Segro (SGRO.L: ) topped the FTSE 100 fallers’ list, shedding
2.9 percent, after the industrial property landlord reported
first-half results, with Evolution Securities cutting its rating
on the stock to “neutral” from “add”, saying there is “no
catalyst for equity outperformance”. [ID:nLDE67O11S]

On the upside oil services and engineering group Amec
(AMEC.L: ) added 2.1 percent after posting a 20 percent rise in
profit as its order book strengthened and it said it saw
customer spending returning in most of its key markets.

G4S (GFS.L: ) rose 0.9 percent after the security services
group reported a rise in first-half profit thanks to strong
performance at its Asia and Middle East businesses, and said it
expected to deliver more growth in the second half.

Investors are waiting for August’s UK CBI distributive
trades survey, scheduled for release at 1000 GMT.

On the other side of the Atlantic, U.S. weekly jobless
claims are due at 1230 GMT.

(Editing by Erica Billingham)

FTSE gains as Kazakhmys leads miners higher