By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- U.K. stocks bounced Friday, as gains for
shares of miner Anglo American PLC and other companies that harvest
natural resources pushed the benchmark FTSE 100 to a weekly
gain.
The key index rose 0.7% to 6,873.52, and closed the week up by
0.3%.
Blue-chips extended gains with other European stock markets
after the eurozone's quarterly gross domestic product reading of
0.3% came in better than expected, largely driven by strength in
Germany. The eurozone is the U.K.'s largest trading partner.
In London, the key oil and gas group rose by more than 2%, and
basic-materials group tacked on nearly 4%. Oil majors BP PLC (BP)
and Royal Dutch Shell PLC (RDSB) were higher by 2.2% and 1.5%,
respectively, as Brent crude-oil futures and U.S. oil futures
(CLH5) zoomed up more than 3%. Oil producer Tullow Oil PLC rose
5.2%, topping the FTSE 100.
Anglo American shares headed 3.4% higher as prices for most
metals also advanced in the face of dollar weakness(DXY), which can
boost the attractiveness of dollar-denominated commodities. Anglo's
stock pushed past the company's report of a 2014 net loss of $2.51
billion on a multibillion-dollar write-down of some iron-ore and
coal-mining assets. The loss was wider than its 2013 net loss of
$961 million.
The mining company's yearly results were "roughly in-line" with
expectations, said Jefferies in a note, with underlying per-share
earnings coming in at $1.73, compared with its forecast for
$1.64.
Anglo held its 2014 dividend at 85 cents a share from the 2013
level. Jefferies said that move was also in-line with expectations,
although its analysts said "we would argue that it would have been
more prudent to cut the dividend, in light of the challenging
environment and increasing net debt levels." Jefferies maintained
its hold rating on Anglo.
Elsewhere in the mining group, BHP Billiton PLC (BHP) shares
popped up by 5% and Rio Tinto PLC (RIO) gained 3.7%.
GlaxoSmithKline PLC (GSK) was among the day's best performers,
rising 4.5% after UBS raised its rating on the drug maker to buy
from sell. Also, shares of Rolls-Royce Holdings PLC climbed 4.4%
although the engine maker further cut its profit forecast for the
year.
Telecommunications provider BT Group PLC was among decliners on
the FTSE 100 as its shares fell 2.3%, and cruise operator Carnival
PLC gave up 2%.
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