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Miners and banks on the rise as FTSE awaits Greece developements

Leading index edges higher as investors eye Greek bond situation and EU meeting

Miners and banks are leading the market higher despite the continuing impasse between Greece and its private bondholders, not to mention the rest of the eurozone’s problems.

The FTSE 100 is up 13.98 points at 5742.53, on hopes a Greek deal could be close as EU finance ministers meet in Brussels. Kathleen Brooks at said:

The problem for investors is that the Greek risk is virtually impossible to price in. We haven’t had a default of a western nation in so long that it is virtually impossible to quantify the risk and try to guess how markets would react. However, the fact that the weekend’s developments (or lack of them) in Athens hasn’t caused sentiment to drain from the markets is perhaps because investors believe that EU policy makers will spring to action and either agree a solution to the [bondholders] issue as soon as possible or take drastic action to negate some of the effects of Greek default, if it were to happen.

Vedanta Resources has risen 30p to £11.76, after completion of its purchase of the bulk of Cairn Energy‘s Indian business. Cairn meanwhile has climbed 3p to 293.6p as its agreed to farm out part of its Greenland licence to Statoil. Cairn said:

Statoil’s extensive Arctic operating and development experience makes them the partner of choice for the Pitu block where we see significant potential.

Royal Bank of Scotland is up 0.75p at 28.19p while Lloyds Banking Group is 0.3p better at 32.955p.

Elsewhere IMI is down 22.5p at 855p after UBS cut its rating on the engineering group from buy to neutral and its price target from 950p to 900p. Analyst Stephen Swanton said:

We still like IMI’s self-help story and balance sheet optionality but after the disappointment over third quarter growth, at least versus our expectations, combined with a recently buoyant share price we find it difficult to remain bullish on the stock and downgrade to neutral. We think the 4% organic growth IMI saw in the third quarter deteriorates further into 2012, making it more difficult to keep the margins trending up. © 2012 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to our Terms & Conditions | More Feeds