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* FTSE 100 up 0.3 pct
* Miners, oil lend support
* DCC gains after agrees to buy Shell assets
By Kit Rees
LONDON, April 5 British shares rose on
Wednesday, extending gains from the previous session as
heavyweight mining shares and oil stocks rallied while DCC
also gained after agreeing to buy a business in Hong
Kong and Macau.
The blue chip FTSE 100 index was up 0.3 percent at
7,341.07 points by 0919 GMT, outperforming the broader European
market thanks to its large proportion of resources-related
Miners were the standout performers, with BHP Billiton
, Antofagasta and Anglo American all
gaining between 1.7 percent to 2.4 percent as copper prices
BHP Billiton, the world's biggest exporter of coal for
making steel also saw support after declaring force majeure for
coal deliveries from its mines in Australia's Bowen Basin after
a cyclone damaged railway lines.
Disruption from Cyclone Debbie has spurred worries of
tighter supply, sending coking coal futures higher.
Oil stocks also lent support, with BP and Royal Dutch
Shell both up around 1.3 percent as the price of oil
rose close to a month high on signs of a gradual tightening in
global oil inventories.
DCC was also among the biggest gainers, up 1.6
percent and trading close to record highs after agreeing to buy
Royal Dutch Shell's LPG business in Hong Kong and Macau for an
enterprise value of $145 million.
"It ... provides a good platform for further growth in the
Asian LPG market as it pursues its strategy to be a global
leader in its industry," analysts at UBS said in a note.
The biggest faller was specialty chemicals company Croda
which dropped 3.7 percent after Credit Suisse
downgraded its rating to "underperform" from "neutral".
"We believe Croda shares are trading at a premium to fair
value given operational headwinds in 2017 and structural
long-term pressure in Personal Care as the business lifecycle
matures," analysts at Credit Suisse said in a note.
Outside of the blue chips, shares in Allied Minds
were set for their biggest one-day loss on record, plummeting
15.6 percent after the tech and life sciences-focused incubator
cut funding for seven of its portfolio companies.
(Reporting by Kit Rees; Editing by Alison Williams)