By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Shares of Eurasian Natural Resources
Corp. surged after bid talks on Friday, while the broader U.K.
stock markets broke a five-day losing streak after banks and miners
moved higher.
The FTSE 100 index rose 0.7% to close at 6,286.59, after
spending the rest of the week mired in the red. On the week, the
index closed out 1.5% lower, as worries that weak U.S. and China
data signaled a slowdown in global growth.
U.K. mining firms in particular were among major decliners
earlier in the week, but rebounded on Friday.
Shares of Eurasian Natural Resources Corp. soared 27%, after one
of the miner's founding shareholders Alexander Machkevitch said he
is considering making a bid for the company.
Shares of Kazakhmys PLC , which owns a 26% stake in ENRC,
rallied 24%.
Anglo American PLC rose 2.2%, after the miner said first-quarter
output was higher across most commodities including copper, iron
ore and diamonds.
Other mining firms were also moving higher. Fresnillo PLC gained
2.9%, Vedanta Resources PLC picked up 6.1% and heavyweight Rio
Tinto PLC (RIO) added 1.5%. Metals prices were mixed.
Oil firms advanced, as oil prices rose on reports the
Organization of the Petroleum Exporting Countries may hold an
emergency meeting to discuss the recent slump in oil prices. BP PLC
(BP) gained 1.1% and Royal Dutch Shell PLC (RDSB) eked out a 0.5%
gain.
Shares of luxury retailer Burberry Group PLC (BURBY) climbed
1.4%, after Goldman Sachs added the firm to its conviction buy list
"following significant share price underperformance in a period
when business fundamentals remain robust."
Banks were among other notable gainers, rising with the broader
European financial sector. HSBC Holdings PLC (HBC) added 2.4%,
Royal Bank of Scotland Group PLC (RBS) gained 2.4% and Standard
Chartered PLC climbed 0.9%.
On a more downbeat note in London, Tesco PLC (TSCDY) lost 0.7%,
after Standard & Poor's Ratings Services cut the supermarket
retailer's credit rating to BBB+ from A-.
"We believe that, in light of currently difficult industry
conditions, U.K.-based retailer Tesco PLC will continue to see a
trend of weaker profitability and top-line pressure," the analysts
said.
Outside the major index, shares of Spectris PLC sank 14%, after
the engineering firm lowered its revenue forecast for 2013.
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