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London close: Stocks at highest since September on ECB optimism, upbeat data

Fri, 23rd Jan 2015 17:08

UK stocks pushed higher on Friday, finishing at levels not seen in over four months, lifted by improving economic data and continued optimism surrounding a massive bond-buying plan by the European Central Bank (ECB).The FTSE 100 settled up 0.5% at 6,832.83 by the end of the session despite heavy falls in the mining sector. This was the index's first close above the 6,800 mark since 19 September 2014.Nevertheless, nervousness ahead of Sunday's general election in Greece was limiting gains in London. Analysts at Barclays said that while the latest polls suggest a victory for the anti-austerity Syriza party, "we nonetheless do not rule out a more adverse scenario in which a second round of general elections are needed, prolonging political uncertainty, affecting the economy".The ECB unveiled on Thursday that it would buy €60bn-worth of private and public securities each month until September 2016 in a bid to revive growth and lift the euro area out of deflation.ECB Executive Board member Benoit Coeure said in an interview on Friday that the quantitative easing programme could be increased if it doesn't have its intended impact on inflation. He said if the rate of price rises does not reach just under 2%, "then we'll have to do more or we have to do it for longer".Global data beats forecastsUK retail sales registered an unexpected 0.4% rise in December, boosted by an increased demand for fuel and steady sales over Christmas. Analysts had forecast sales to decline after 1.6% growth in November following the Black Friday sales. As such, sales were up 2.3% over the quarter as a whole, the highest quarterly increase since April 2002.Business activity growth in the Eurozone accelerated at its fastest pace in five months, according to the preliminary January purchasing managers' index (PMI) data published by Markit. The preliminary estimate of the Eurozone PMI composite output index rose from 51.4 in December to 52.2, ahead of the consensus estimate of 51.8.Meanwhile, the HSBC/Markit Chinese manufacturing PMI edged higher to 49.8 in January from 49.6 the previous month; analysts had expected a slight dip to 49.5.Mining stocks dropMiners such as Glencore, Antofagasta, Randgold and BHP Billiton were trading with heavy losses as metal prices weakened. Anglo American was also falling on rumours that it is looking at offloading the Dawson and Foxleigh coal mines in Australia, while Glencore was hit by a downgrade to 'underweight' by JPMorgan Cazenove.Heading the other way were heavyweight consumer staples stocks such as Associated British Foods, Reckitt Benckiser, Unilever and Imperial Tobacco.Vodafone was also on the rise after UBS said at the decline in organic revenues is estimated to have eased in its third quarter. The bank forecasts a return to growth in the first quarter of next year, saying that the stock "remains one of our preferred picks in the sector".Building materials firm CRH was extending gains made on Thursday after confirming speculation that it could buy some of Lafarge and Holmium's assets ahead of their proposed merger.The share price of oil and gas group EnQuest surged after it renegotiated covenants on its debt facilities with lenders and reassured its financial position "remains resilient" despite the recent collapse in crude prices. The company also slashed its spending budget for this year. Market MoverstechMARK 3,090.99 +0.76%FTSE 100 6,832.83 +0.53%FTSE 250 16,458.90 +0.49%FTSE 100 - RisersAssociated British Foods (ABF) 3,080.00p +3.18%Reckitt Benckiser Group (RB.) 5,560.00p +2.96%CRH (CRH) 1,680.00p +2.50%Unilever (ULVR) 2,854.00p +2.48%Pearson (PSON) 1,349.00p +2.35%BT Group (BT.A) 431.10p +2.35%Imperial Tobacco Group (IMT) 3,091.00p +2.35%Reed Elsevier (REL) 1,160.00p +2.29%Shire Plc (SHP) 4,816.00p +2.16%International Consolidated Airlines Group SA (CDI) (IAG) 536.00p +2.10%FTSE 100 - FallersGlencore (GLEN) 249.40p -5.82%Antofagasta (ANTO) 684.50p -4.80%Tullow Oil (TLW) 371.30p -4.38%Anglo American (AAL) 1,103.50p -3.62%Rio Tinto (RIO) 2,883.00p -2.81%Randgold Resources Ltd. (RRS) 5,420.00p -2.43%Capita (CPI) 1,082.00p -2.17%BG Group (BG.) 891.70p -2.11%Fresnillo (FRES) 897.00p -1.97%BHP Billiton (BLT) 1,425.00p -1.86%FTSE 250 - RisersJimmy Choo (CHOO) 178.00p +5.95%Interserve (IRV) 523.50p +5.57%Balfour Beatty (BBY) 227.00p +5.29%AO World (AO.) 288.30p +5.03%Euromoney Institutional Investor (ERM) 1,057.00p +4.86%SSP Group (SSPG) 277.00p +4.53%Workspace Group (WKP) 803.50p +4.35%St. Modwen Properties (SMP) 427.80p +4.32%Crest Nicholson Holdings (CRST) 371.30p +4.01%Henderson Group (HGG) 237.40p +3.94%FTSE 250 - FallersVedanta Resources (VED) 430.00p -8.43%Centamin (DI) (CEY) 66.40p -7.91%Hunting (HTG) 460.40p -7.90%Acacia Mining (ACA) 290.90p -6.16%Kaz Minerals (KAZ) 197.10p -5.65%Telecom Plus (TEP) 1,038.00p -5.12%Supergroup (SGP) 954.00p -4.60%PayPoint (PAY) 890.00p -3.78%Lonmin (LMI) 174.00p -3.12%NMC Health (NMC) 494.80p -2.60%

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