FTSE 100 rises, led by mining shares; Dairy Crest gains on buyout deal

FTSE 100 rises, led by mining shares; Dairy Crest gains on buyout deal
FILE PHOTO: A man walks through the lobby of the London Stock Exchange August 5, 2011. REUTERS/Suzanne Plunkett/File Photo   -  Copyright  Suzanne Plunkett(Reuters)
By Reuters

(Reuters) – Britain’s main stock index edged higher on Friday, led by gains in mining shares as optimism grew over global trade talks, while mid-cap Dairy Crest rose after agreeing to a takeover.

The FTSE 100 rose 0.3 percent but still looked set for losses for the week. The FTSE 250 was up 0.2 percent by 0840 GMT.

Mining companies led the FTSE 100 gains, as falling inventories and optimism around the Sino-U.S. trade talks pushed copper prices higher. Glencore and Fresnillo added more than 2 percent each.

Dairy Crest surged nearly 13 percent, on track for its best day in more than four years, after Canada’s Saputo agreed to buy it for about 975 million pounds.

Pearson was up 0.7 after reporting profit in line with forecasts and saying it expected sales to stabilise this year and grow thereafter.

Barclays was down 1.8 percent a day after posting its results.

Metro Bank rose 4.7 percent on the mid-cap index after it got 120 million pounds in funding as part of Britain’s Banking Competition Remedies scheme, which is intended to increase competition among banks.

CYBG shed 6.4 percent and fell to the bottom of the index after it was turned down for funds under the scheme.

Sub-prime lender Non-Standard Finance gained 5.6 percent after making a takeover offer for Provident Financial. Provident also gained 2 percent, despite the bid’s not offering a premium to its closing price on Thursday.

(Reporting by Muvija M and Shashwat Awasthi in Bengaluru, editing by Larry King)

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