Weaker Vodafone outweighs gains in mining stock as Footsie slides

FTSE: 6,018.30 (–3.96) Mid-250: 11,810.48 (+54.29) Small Cap: 3,265.61 (–4.80)MOST UK stocks rose and the benchmark FTSE 100 Index posted a weekly gain yesterday, as mining companies climbed with metal prices, helping to offset a decline in Vodafone.

The benchmark FTSE 100 slid 3.96, or 0.1 per cent, to 6,018.3 at the close in London as more than three companies rose for every two that fell.

“Banks have fared well and soaring commodity prices have given miners a boost,” said Ben Critchley, a London-based sales trader at IG Index. “Bottom of the pile was Vodafone after a profits warning from KPN.”

The FTSE 100 has recouped all of its losses from the sell-off on April 18th, after Standard and Poor’s cut its outlook for the long-term sovereign credit rating of the US to negative. Since hitting its 2011 low on March 16th, the gauge has rebounded 7.5 per cent.

Vodafone, the world’s largest mobile phone company, dropped 4.3 per cent to 169.1p, the biggest decline in almost a year.

Fresnillo, a silver producer, rallied 2.2 per cent to 1,648p as precious metals advanced.

African Barrick said gold production was in line with expectations for the quarter, climbing 1.1 per cent to 545p and Petropavlovsk, which posted a 15 per cent increase in first-quarter output, gained 1.1 per cent to 910p.

Gold traded at more than $1,500 an ounce after investors sought to protect their wealth from further currency debasement and accelerating inflation. Silver, palladium and platinum also advanced in New York.

Barclays led banks higher, rallying 1.5 per cent to 298.9p, as Nomura said the lender’s valuation “offers support” in a weak environment for revenue. Analysts reiterated their “neutral” rating and 340 pence price estimate, 14 per cent above yesterday’s closing price. Barclays reports its earnings next week.

Banks also advanced as Morgan Stanley reported first-quarter earnings that beat analysts’ estimates as trading revenue more than doubled from the fourth quarter.

Autonomy jumped 7.4 per cent to 1,620p after the UK’s second-largest software company said analysts’ estimates for its 2011 earnings will “turn out to be conservative”.

TUI Travel climbed 3 per cent to 238.9p after Deutsche Bank raised its recommendation for Europe’s biggest tour operator. – (Bloomberg)