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Home Markets Markets Rio and Vedanta lead miners
Rio and Vedanta lead miners PDF Print E-mail
Written by Gary Howes   
Wednesday, 01 July 2009 10:24
FTSE News: The FTSE is ahead this morning with demand for miners adding to well received trading statements from Marks & Spencer and International Power.

The FTSE 100 is up 1.42% to 4,309.30 in mid morning trade.

Miners are going strongly led by Vedanta, ENRC, Kazakhmys and Rio Tinto.

Vedanta Resources (LON:VED) is up 8.39% courtesy of more robust copper prices - a commodity that forms one of Vedanta's key focus.

Rio Tinto (LON:RIO) is also up on the back of commodity prices.

Investors appear to be unfased that the decades-old benchmark system for setting the price of iron ore looks to be on its last legs with no agreement expected by last night's deadline between major producers and Chinese steel mills.

Rio Tinto and BHP Billiton had until midnight last night to reach an agreement or risk moving to volatile spot prices for its customers.

Bus and rail group National Express is the big story as far as the losers go.

Shares have fallen sharply this morning as it has handed back the East Coast franchise after failing to renegotiate terms. The service will now be nationalised until a new franchisee is found. National Express, which also confirmed the departure of chief executive Richard Bowker, will not be considered ever again for a franchise said the government.

Marks and Spencer’s (LON:MKS) like-for-like sales fell across its major divisions in the first quarter, though total group sales were up. In the 13-weeks to June, UK like for like sales fell 1.4%, General Merchandise slipped 2.4% and Food was down 0.5%, but the figures were better than feared and the shares are up. Next is higher in sympathy.

Miners are going strongly led by Vedanta, ENRC, Kazakhmys and Rio Tinto.

Power generator International Power is to offload its Czech operations to Czech-Slovak investment firm J&T Group. International Power will sell its wholly owned subsidiary International Power Opatovice (IPO) plus IPO’s interests in its subsidiaries Pražská Teplárenská (PT) and Energotrans (ET) for CZK 22.5bn (£738.3m).

Legacy software group Micro Focus has upped its cash offer for Borland for a second time to see off a potential rival bidder. Micro Focus is now offering $1.50 cash for each outstanding share of Borland Software Corporation, which values it, on a fully diluted basis, at approximately $113m.

Energy services provider John Wood Group said performance in the year to date remains in line with expectations. The group said although the oil price has strengthened over recent weeks, market conditions remain broadly similar to those outlined in May.