FTSE 100 watch: Miners support Footsie as metals prices rise

Smurfit Kappa shares in demand as International Paper scraps offer

FTSE 100 watch: Miners support Footsie as metals prices rise

The UK benchmark index has gained ground in today’s session, finding support in blue-chip miners, which have tracked metals prices higher. In individual movers, Smurfit Kappa (LON:SKG) is outperforming the FTSE 100 index after it emerged that International Paper had dropped its plans to bid for the company.

FTSE 100 gains ground

As of 12:16 BST, the Footsie had added 33.12 points to stand 0.43 percent higher at 7,719.92. The blue-chip index has found support in miners, which have tracked prices of base metals higher. Anglo American (LON:AAL) is currently the sector’s biggest riser in percentage terms, having gained 2.57 percent to 1,906.60p.

“The overall picture for indices is still bullish, although a stronger pound is making life more difficult for the FTSE 100,” Chris Beauchamp, market analyst at IG, commented in a note.

Individual movers

Smurfit Kappa has been one of today’s most prominent Footsie risers after International Paper Company announced plans to end its pursuit of the FTSE 100 producer of paper-based packaging group.

“The fundamentals of the European packaging sector are in excellent shape,” Davy analyst Barry Dixon said in a note, as quoted by Reuters, adding that Smurfit was “the leading player in this market and therefore the most exposed to the positive dynamics”. The FTSE 100 group’s shares are changing hands 0.96 percent higher at 2,948.00p.

Centrica (LON:CNA) has been another notable blue-chip riser after analysts at JPMorgan lifted their stance on the British Gas owner, arguing that the group’s dividend was safe for now. Centrica’s shares are 2.41 percent better off at 146.45p.

The FTSE 100 was 0.41 percent up at 7,718.32 points as of 12:40 BST on Wednesday, 06 June 2018.

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