FTSE 100 gains on energy, mining stock boost; records best week in over a month

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A worker shelters from the rain as he passes the London Stock Exchange in London

By Shashank Nayar

(Reuters) -Energy and mining stocks led the FTSE 100 higher on Friday on the back of higher commodity prices with the blue-chip index ending its best week in over a month following a boost from a dovish central bank policy in the previous session.

The benchmark FTSE 100 index rose 0.4% to record its best week in over a month, extending previous session gains as the Bank of England left interest rates unchanged near record lows.

Energy shares climbed 0.9%, while BHP Group, Anglo American and Rio Tinto were among the top boosts to the blue-chip index.

"The UK market is the cheapest market right now relative to its European peers and support from the BoE will just add to the market positive narrative," said Keith Temperton, a sales trader at Forte Securities.

A raft of monetary and fiscal stimulus has helped the FTSE 100 rise 27% since the UK's second COVID-19 wave in October, but it has still underperformed its European peer, which gained 33% over the same period.

Retailers rose 1%, led by gains in JD Sports on Nike Inc's upbeat forecast and better-than-expected quarterly revenue and as overall retail sales in the UK jumped in June.

"Given JD Sports position in the UK market, and its recent acquisition of Finish Line, it's highly likely that JD Sports will have reaped the benefits of this huge boost in Nike’s US business," said Michael Hewson, chief market analyst at CMC Markets UK.

The domestically focussed mid-cap index rose 0.6%.

UDG Healthcare added 1.0% after it said private equity firm Clayton, Dubilier & Rice (CD&R) was considering raising its offer to buy the healthcare company to 1,080 pence per share.

Building materials business CRH gained 2% and was among the top gainers on the FTSE 100 after brokerage Berenberg raised its target price on the stock.

(Reporting by Shashank Nayar in Bengaluru; editing by Uttaresh.V and Jonathan Oatis)

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