Hopes that Russia will pump more gas to Europe to address the current energy crisis helped boost sentiment on Thursday.
Concerns over elevated gas prices started to ease after Russia offered to increase supplies while house prices rose by 1.7% in September according to the Halifax building society, the biggest monthly increase since February 2007.
By noon, the FTSE 100 traded 1.1% higher at 7,071.8 points, while the FTSE 250 was 0.3% firmer at 22.458.96.
MINERS IN DEMAND
Miners dominated the FTSE 100 leader board with Antofagasta (ANTO) gaining 5.5% to £13.53, Anglo American (AAL) marked 4.1% higher to £26.31 and Fresnillo (FRES) firming 2.7% to 818p on the rebound in Chinese stocks.
Online trading platform CMC Markets (CMCX) forecast a decline in first-half revenue following a more subdued period of client trading activity since the beginning of the year.
Operating income for the six months to 30 September 2021 was expected to be around £126 million. Leveraged trading revenue was anticipated to decline to £100 million from £200 million, on a year-on-year basis. Shares eased 2% lower to 271.5p.
Packaging company Mondi (MNDI) reported an increase in earnings as a result of robust volume growth coupled with higher prices. Earnings before interest, tax, depreciation and amortization or EBITDA for the third quarter increased by 27% on a year-on-year basis to £388 million. Shares gained 0.7% to £18.
Oil major Royal Dutch Shell (RDSB) cautioned that elevated natural gas and electricity prices would have a significant impact on its quarterly revenue. The group also highlighted the impact of disruptions caused by Hurricane Ida.
Third quarter earnings and cash flow are expected to be negatively impacted by approximately $400 million. However, shares traded 0.8% higher at £16.77.
Leisure cruise operator Carnival Corporation (CCL) announced that its cruise company, Carnival Cruise Line, planned to restart more operations in January and February. Shares moved 1.8% higher to £16.79.
Ventilation company Volution (FAN) reported a 106% increase in pre-tax profit to £30 million and resumed dividends with a total payment for the year of 6.3p per share, lifting the shares by 0.2% to 475.5p.
IN OTHER NEWS
Shares in Pendragon (PDG) motored 6.6% higher to 18.65p after the car retailer raised underlying pre-tax profit guidance for the current calendar year from the previous £55 million-to-£60 million range to roughly £70 million.
The Nottingham-headquartered automotive dealer said performance remained strong during the third quarter, with new vehicle supply shortfalls offset by margin strength in both new and used cars as well as cost and efficiency savings.
Flexible offices provider Workspace (WKP) gained 3.9% to 829p after the firm posted a positive trading update for the quarter to September thanks to a pick-up in both rents and occupancy.
And premium bar operator Revolution Bars (RGB:AIM) shot 14.4% higher to 25.75p after it said first quarter trading was well ahead of expectations.
Since all pubs and bars restrictions were removed in England on 19 July, two weeks into the company’s new financial year, it has seen strong demand from party revellers which pushed like-for-like sales up 21% in the period to 2 October compared with pre-pandemic levels two years ago.
