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* Auto retailer Pendragon gains on strong quarterly
performance
* Recruiter Robert Walters rises on strong profit forecast
* FTSE 100 up 1.2%, FTSE 250 adds 0.8%
(Updates to close)
By Shashank Nayar and Bansari Mayur Kamdar
Oct 7 (Reuters) - London's FTSE 100 recorded its best day in
over two weeks on Thursday, led by gains in heavyweight mining
and bank stocks, while Workspace Group surged as demand for its
office spaces recovered.
The blue-chip FTSE 100 gained 1.2%, with miners
Glencore, Anglo-American and Rio Tinto
among the top boosts. Industrial and precious
metal miners added 2% each on higher metal
prices.
The FTSE 100 has gained about 9.5% so far this year and the
mid-cap index is up nearly 10% amid re-opening optimism
and accommodative central bank policies.
However, a recent rise in inflation on the back of surging
oil and gas prices has weighed on the UK's benchmark indexes as
investors now bet on a sooner-than-expected pullback of easy
monetary policies.
"Investors are now very much aware we are entering a period
where we are going to have continued inflation and it is not
going to be ridiculously transitory either," said Danni Hewson,
an analyst at AJ Bell.
"But there is a lot of hope still that it will not last
beyond a few months."
Royal Dutch Shell gained 1.2% despite warning of a
$400 million hit to third-quarter earnings from the damage
caused by August's Hurricane Ida.
Homebuilder stocks climbed 0.5% after
mortgage lender Halifax said British house prices rose by the
most in almost 15 years in September.
The domestically focused mid-cap index advanced 0.8%, with
travel stocks among the top performers.
Shares of online auto retailer Pendragon Plc climbed
6.9% after the company reported a strong third-quarter
performance.
Workspace rose 4.9% after the office space provider
said the number of people using its centres in London peaked at
over half of pre-pandemic levels by the end of September.
British recruitment firm Robert Walters rose 2.5%
after it said its annual profit would be ahead of expectations
as it benefits from a hot jobs market.
(Reporting by Bansari Mayur Kamdar, Shashank Nayar and Amal S;
Editing by Subhranshu Sahu, Krishna Chandra Eluri and Steve
Orlofsky)
