FTSE 100 records slight gain

FTSE 100 records slight gain
FTSE 100 records slight gain
 
 

Tuesday, 22, Sep 2009 05:28

The FTSE 100 closed up just 0.16 per cent on Tuesday after rising strongly in early trading.

In the morning the index was pushing up to 5,190 - but it closed at 5,142.60, rising just 8.24 points.

Early optimism was led by the miners - but wider losses kept a lid on gains.

Over in New York, the Dow has been enjoying a bumpy morning - with an initial jump lost, then regained.

At 12:09 EDT (17:09 BST) the index was up 0.55 per cent to 9,832.67.

Tim Hughes, head of sales trading at IG Index, said: "After a fantastic morning, the FTSE 100 has eased back after a weaker-than-expected start to the US markets has taken some of the wind out of its sails.

"But UK shares remain positive with mining stocks continuing to dominate the most significant gainers."

In London the only clear pattern was that miners were holding their position.

Eurasian gained 4.41 per cent, Fresnillo was up 3.58 per cent and Rio Tinto rose 2.40 per cent.

Carnival led the gains up 5.00 per cent as the cruise shop operator reported booking volumes were up 19 per cent on last year, although ticket prices had been dropped.

Old Mutual was up 2.86 per cent.

On the downside, United Utilities fell 2.17 per cent, Man Group lost 1.97 per cent, Cable & Wireless dropped 1.96 per cent and Rolls-Royce slid 1.94 per cent.

"There is still the nagging doubt that shares are well overdue some sort of correction following the rapid gains seen over the past two months," said Mr Hughes.

"With many investors sitting on sizeable, but as yet unrealised gains, there is the potential for any slide to be sharp and deep if everyone tries to get out at the same time.

"But at the moment, despite keeping one eye on the exit, investors still seem happy to use the brief dips as opportunities to add to their holdings."


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