FTSE 100 movers: Miners and energy shares rally; defensives take a hit
London’s FTSE 100 was up 1.4% to 7,662.86 in afternoon trade on Friday, with cyclicals pacing the advance.
Miners did well, with Glencore, Anglo America, BHP Billiton and Rio Tinto all on the front foot as investors piled into cyclical stocks in risk-on trade. In contrast, defensive pharmaceutical stocks AstraZeneca and GlaxoSmithKline lost out.
Energy shares rallied as oil prices rose after the Organisation of Petroleum Exporting Countries and Russia agreed on a 1m barrel a day increase in their combined level of output following a last-minute compromise with those producers that were opposed to a deal.
However, due to the inability of several member countries to increase their output, in reality the agreement equated to around a 600,000 b/d boost, according to reports citing one of the delegates present.
Commenting on the results of the meeting, analysts at Barclays Research said that if Iran, Venezuela, Libya and Nigeria were excluded then the net increase resulting from the deal might reach as high as 770,000 barrels a day.
"Based on our previously published balance, we expect OPEC crude output to increase by about 700 kb/d by the end of the year, assuming Libya’s oil output can rebound to 900 kb/d," Barclays Research added.
"This agreement is consistent with those expectations, though we see a slight upside risk in Saudi, UAE, and Kuwaiti output expectations compared with our balance."
Royal Dutch Shell and BP both gushed higher.
On the downside, Shire slipped despite saying that tests of patients with metastatic pancreatic cancer have been shown to benefit from a combined treatment with its Onivyde drug.
FTSE 100 - Risers
Glencore (GLEN) 386.20p 3.93%
Royal Dutch Shell 'B' (RDSB) 2,700.00p 3.17%
BP (BP.) 577.10p 3.15%
Royal Dutch Shell 'A' (RDSA) 2,601.00p 3.07%
Anglo American (AAL) 1,701.40p 2.98%
Fresnillo (FRES) 1,168.00p 2.37%
ITV (ITV) 177.65p 2.30%
BHP Billiton (BLT) 1,671.80p 2.30%
Rio Tinto (RIO) 4,193.50p 2.22%
Aviva (AV.) 513.60p 2.11%
FTSE 100 - Fallers
Micro Focus International (MCRO) 1,346.50p -1.43%
Coca-Cola HBC AG (CDI) (CCH) 2,528.00p -1.06%
AstraZeneca (AZN) 5,203.00p -0.99%
Shire Plc (SHP) 4,066.00p -0.54%
SEGRO (SGRO) 658.80p -0.18%
Scottish Mortgage Inv Trust (SMT) 540.50p -0.09%
Halma (HLMA) 1,389.00p -0.07%
easyJet (EZJ) 1,783.00p -0.06%
Diageo (DGE) 2,730.00p 0.00%
GlaxoSmithKline (GSK) 1,538.80p 0.03%