UK stocks close slightly higher supported by precious metal miners

LONDON: London equities closed slightly higher on Monday, helped by precious metal miners and defence stocks, but losses in utilities kept gains in check.

The blue-chip FTSE 100 closed 0.1 percent higher, following its biggest weekly decline in almost five months on Friday. The domestically focussed mid-cap index rose 0.1 percent.

Defence stocks advanced after Norway said it had chosen Britain as its strategic partner for the acquisition of new frigates, in a deal worth some 10 billion pounds ($13.51 billion).

BAE Systems rose 1.9 percent, Babcock advanced 2.1 percent, while Rolls-Royce gained 2.8 percent.

Precious metal mining stocks gained 3.3 percent, tracking higher gold prices. Hochschild Mining rose 6.7 percent, Fresnillo and Endeavour Mining added 2.1 percent and 3.5 percent, respectively.

The FTSE 100 hit a record high in August, as global shares rallied on rising bets on a US rate cut in September, but at the end of the month registered four straight sessions of declines.

Heavyweight banking stocks, which fell on Friday after a think-tank recommended a new tax on lenders as a possible way for finance minister Rachel Reeves to raise revenue, rebounded slightly on the day with several analysts saying the sharp falls last week were overdone.

NatWest was up 1.2 percent and Barclays rose 1.9 percent.

On the flip side, utility stocks fell, with SSE down 3.1 percent, while National Grid and United Utilities fell 2.1 percent and 2.5 percent, respectively.

Personal goods and industrial mining stocks also declined.

Among corporate updates, IT software developer Kainos jumped 22.5 percent, to top the mid-cap index, on an upbeat annual outlook.

Domino’s Pizza Group rose 8.8 percent on reaffirming its annual earnings forecast and launching a new share buyback.

A survey showed Britain’s manufacturers suffered a fresh setback in August with new orders dropping due to worries about trade tensions abroad and tax increases at home.

Meanwhile, a US appeals court ruled on Friday that most of US President Donald Trump’s tariffs are illegal, although it allowed them to remain in place until mid-October to permit further appeals.