By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- U.K. stocks index struggled for
direction most of Wednesday, as miners attempted to force the
benchmark index south, while gains for banking and oil shares
managed to push it into positive territory for the close.
The FTSE 100 index inched 0.1% higher to close at 5,752.03.
Shares of Xstrata PLC rose 1.1% and those of Glencore
International PLC picked up 0.7%, as European Union regulators
moved closer to approving a merger between the two companies.
Both companies approved the all-share tie-up on Tuesday,
although Xstrata shareholders, rejected a controversial retention
package for senior managers.
Shares of Johnson Matthey PLC dropped 5.8%, the biggest loss in
the index, after the chemicals firm posted a 6% decline in
first-half pretax profit on the back of lower metals prices. It
further said the second-half performance should be similar to that
of the first half.
Mining firms were also on the decline, as metals traded mixed.
Shares of Rio Tinto PLC (RIO) gave up 1%, Anglo American PLC shares
fell 0.7%, while those of BHP Billiton PLC tripped 0.4%.
Oil firms, however, moved higher as oil prices spent most of the
European trading session in positive territory. BG Group PLC rose
2.8% and Royal Dutch Shell PLC (RDSB) gained 0.5%.
Minutes from the Bank of England's Monetary Policy Committee
latest meeting showed that eight out of nine members agreed to keep
the bank's asset-purchase program at 375 billion pounds ($596.2
billion), while one member wanted a £25 billion increase. The
committee voted unanimously to keep its key lending rate at a
record low 0.5%.
Supporting the index in London, shares of Lloyds Banking Group
PLC (LYG) added 1%, after Morgan Stanley late Tuesday raised the
bank to equal weight from underweight, citing reduced tail risks
from funding and asset quality.
Shares of Barclays PLC (BCS) rose 1%, while HSBC Holdings PLC
shares (HBC) eked out a 0.6% gain.
British Land Co. PLC picked up 1.8%, after Morgan Stanley lifted
the stock to overweight from equal weight.
The bank also gave Land Securities Group PLC the same treatment,
prompting a 0.8% rise in the real-estate firm's shares.
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