Footsie fails to benefit from rising miners over euro zone debt fears

FTSE: 5,923.69 (-2.18) Mid-250: 11,943.55 (-55.67) Small Cap: 3,272.37 (-9.35)THE FTSE 100 Index failed to make headway yesterday after fears over the euro zone debt crisis offset gains from resurgent miners. The top flight index pulled back earlier losses to finish slightly down after mining stocks rebounded amid more volatility in the commodities market.

The US market lifted the blue chip index upwards after it made gains despite the headline reading in the Federal Reserve Bank of New York’s Empire State Manufacturing Survey coming in well below expectations.

Miners dominated the risers board after investors were urged to take advantage of a recent sell-off in the sector.

Antofagasta was the top riser, up 43p to 1185p, after an upgrade from Citigroup. Kazakhmys was up 29p at 1242p and BHP Billiton was ahead 52p at 2392p.

Software group Autonomy also rose after the company said it had agreed to buy assets from American information management firm Iron Mountain for $380 million. It will acquire digital archiving and online back-up and recovery solutions from Iron Mountain Digital under the deal. Autonomy shares were up 46p at 1780p.

The retail sector came under the spotlight following speculation that under-pressure Kesa Electricals was considering a move to sell its UK arm Comet and delist from the London Stock Exchange.

Kesa shares were 9.7p higher at 150.7p, while rival Dixons Retail, which owns PC World and Currys, added 2.3p to 18.4p on hopes it will see some benefit from reduced competition.

Elsewhere, shares in BP fell nearly 1 per cent as the deadline for its Arctic exploration and share swap deal with Russian government-owned Rosneft closed in.

It had until midnight to secure an agreement with Rosneft and its existing Russian partners in a 50-50 joint venture TNK-BP. BP shares were 3.8p lower at 438.5p.

Shares in London Stock Exchange Group were also higher after it emerged that a group of Canadian pension funds and banks had tabled a rival bid proposal for TMX Group, the owner of the Toronto stock exchange.

LSE, which unveiled a £4 billion merger with TMX in February, rose 56.5p to 884p amid speculation the rival deal could make it susceptible to takeover.

The biggest Footsie fallers were Aggreko, down 61p to 1750p, Intertek, off 47p at 2008p, Invensys, down 7.2p at 319.4p, and Weir Group, off 42p at 1878p. – (PA)