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Britain's FTSE rises as Randgold shines
February 6, 2017 / 10:12 AM / 9 months ago

Britain's FTSE rises as Randgold shines

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* FTSE 100 up 0.2 pct

* Randgold rallies after Q4 results, leads miners

* Housebuilders drop

By Kit Rees

LONDON, Feb 6 (Reuters) - Britain’s top share index steadied on Monday, helped by gains among mining stocks after Randgold Resources posted solid fourth-quarter results.

The FTSE 100 index was up 0.2 percent at 7,202.44 points by 0947 GMT, slightly outperforming the broader European market.

Randgold Resources jumped 3.6 percent to trade near three-month highs after the gold miner reported its fourth-quarter profit rose 76 percent and said it would increase its annual dividend by 52 percent .

Fellow precious metals miner Fresnillo gained 1.4 percent, supported by a rising gold price, which was up for a third straight session.

“This is an impressive set of figures (for Randgold) and the key here will be the price of gold going forward,” Fiona Cincotta, market analyst at City Index, said in a note.

“Given the heightened uncertainty in the geopolitical arena, with Trump at the helm, gold could be looking to achieve $1300 should the safe-haven trade start to replace the Trump trade, which would serve to boost the miner further.”

Among other risers, Barclays led UK banking stocks higher after the lender said that it would overhaul its back office operations under a restructuring to help it comply with new post-crisis rules.

Analysts also cited U.S. President Donald Trump’s move to order reviews of major banking rules on Friday as supporting banking stocks.

“Barclays would be one of the biggest beneficiaries ... because they have a big U.S. business and they’ve recently restructured so that their focus is just really the U.S. and the UK,” said Jasper Lawler, senior market analyst at London Capital Group.

However, shares in British housebuilders Taylor Wimpey , Barratt Developments and Persimmon fell 1.3 to 1.6 percent before the publication of the British government’s new housing strategy on Tuesday. (Reporting by Kit Rees, editing by Larry King)

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