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The Guardian - UK
The Guardian - UK
Business
Nick Fletcher

Manic miners lead the way

With the market heading higher again, miners are leading the way, for general and specific reasons.

Commodity prices were lifted by hopes that the $150bn (£75bn) package agreed by the US authorities yesterday will help the country avoid recession, and support demand.

More specifically, a power shortage at three of South Africa's top gold mines caused a halt in production. The delay could last a month, so the news has unsurprisingly pushed the gold price higher.

Kazakymys is the leading riser in the FTSE 100 at the moment, up 79p to £11.85. It is closely followed by Rio Tinto, Vedanta Resources and BHP Billiton which are recording rises of between 4% and 6%.

Overall the leading index is 65.9 points higher at 5941.7, but the FTSE 250 has edged down 0.5% to 9804.8.

Among the fallers, Kingfisher slipped 3p to 139.6p as it appointed Ian Cheshire, the boss of its B&Q business, as its new chief executive to replace Gerry Murphy.

It seems like a rather lukewarm reception but analysts at Evolution Securities said: "The new chief executive, Ian Cheshire, is an excellent candidate. There will, however, in our view, be a little disappointment that Peter Jackson, the chairman, did not appoint an outsider to the role.

"Ian Cheshire's appointment could stimulate speculative interest in the stock. We are retaining our buy recommendation although in the short term there will be concern that there is further downside to earnings and the dividend is likely to be cut from 10.65p to 5.5p when final results are announced on March 27."

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