Market report: EasyJet gains height on Air Berlin buzz as rivals are hit by turbulence

The airline market has been clouded by turmoil this month — Monarch Airlines collapsing and Ryanair grappling with a pilots shortage — but the City shrugged off the turmoil to fly with easyJet on Friday.

The low-cost carrier, led by Carolyn McCall, was rumoured to be revealing a deal to purchase up to 25 A320 aircraft from insolvent German firm Air Berlin, sending shares to a higher altitude.

EasyJet said in September that it had bid for parts of Air Berlin’s short-haul business. It declined to comment on the latest report, but investors still flocked to buy shares.

It was one of the biggest risers on the FTSE 100, up 19p to 1314p.

Other companies flying high on the blue-chip index included copper miner Antofagasta and Anglo American.

The former rose 25.5p to 1013p and the latter gained 19p to 1450p as it emerged that industrial production in China picked up in September, beating economists’ forecasts. The output figures have boosted base metal prices.

The FTSE 100 index rose 7.42 points to 7530.46, and AJ Bell investment director Russ Mould said: “Blue-chips opened the last trading day of the week on the front foot with investors focusing on company fundamentals rather than being distracted by the ongoing Brexit talks taking place in Brussels.”

But it was not all good news in the mining industry. On the FTSE 250 index, Acacia Mining said gold production in the third quarter fell 8.3% to 191,203 ounces compared with the previous quarter.

The firm has been hurt by the government of Tanzania tightening its control over its natural resources.

Yesterday majority shareholder Barrick Gold said it had struck a tentative deal for the government to take a stake in Acacia’s mines. Acacia today said it “continues to seek further clarification” on the details.

The City dug out of Acacia and the shares fell 10.3p, or 4.86%, to 201.7p.

The FTSE 250 gained 29.69 points to 20,161.21.

Troubled support services firm Interserve provided the Square Mile with a much-needed update on a £227 million contract win with the Department for Work and Pensions. That came a day after it warned on profits.

Shares in Interserve rose 7.81p to 73.31p.

On AIM, embattled parcels carrier DX Group said it made an adjusted pre-tax tax profit of exactly £0 in the year to June 30, down from £11.5 million in 2016.

Despite the fall, shareholders welcomed news that board changes have come into effect. Logistics industry veteran Ron Series has become chairman. DX gained 2.43p to 13.05p.