The blue-chip FTSE 100 index rose for a second consecutive week on Friday, driven by heavyweight oil and mining stocks, while chemicals gained after a U.S.-based investor doubled its stake in British chemicals maker Johnson Matthey.
The FTSE 100 index rose 0.3%, while the midcap FTSE 250 index dipped 0.4%. Both indexes clocked their biggest weekly gains in six weeks.
Industrial metal miners added 1.7%, tracking optimism around China’s upbeat economic readings and efforts to shore up investor sentiment. The subindex logged its highest weekly gains in seven weeks.
FTSE 100 opens flat as homebuilders counter miners’ drag
Heavyweight energy stocks gained 1.8%, as oil prices jumped on expectations of tightening supplies.
Chemical stocks were up 2.5%, marking their best weekly gains in over seven months, as the investment arm of New York-based industrial firm Standard Industries doubled its stake in Johnson Matthey.
The autocatalyst maker was the top gainer on FTSE 100, adding 9.8%.
Shell rose 1.4% on announcing the sale of its home energy business in the UK and Germany to British energy supplier Octopus Energy Group.
Direct Line dropped 2.1% after it agreed to review overcharging of existing home and motor customers totalling about 30 million pounds ($38 million) for policy renewals.
“The greater damage to Direct Line from the £30 million cost to cover over-charging customers for insurance products is to its brand and reputation – even if the financial cost will sting too,” said AJ Bell investment director Russ Mould in a note.
Renishaw fell 1.6% after Jefferies cut its price target on the engineering company.
UK shares have underperformed broader European peers so far this year due to their heavy weightage of commodity-linked stocks that have lagged amid China’s lacklustre recovery and the Bank of England’s tough stance on inflation.
In the United States, data showed that the unemployment rate rose in August and wage growth slowed in the world’s largest democracy, spurring expectations that the Federal Reserve could pause its interest rate hikes.
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