U.K. Stocks Rise to 10-Month High; BHP Billiton, Rio Tinto Gain

By Adam Haigh

Aug. 24 (Bloomberg) -- U.K. stocks rose for a fifth day to a 10-month high as higher commodity prices boosted the earnings outlook for raw-material producers.

BHP Billiton Ltd. and Rio Tinto Group both advanced more than 2.5 percent as metals prices climbed in London. WPP Plc gained 5.2 percent as Deutsche Bank AG advised buying the shares.

The benchmark FTSE 100 Index climbed 33.49, or 0.7 percent, to 4,884.38 as of 11:35 a.m. in London. A close at this level would be the highest since Oct. 3 last year. The FTSE All-Share Index rose 0.7 percent today and Ireland’s ISEQ Index added 0.4 percent.

“The miners are very strong again and momentum is very firmly the word of the day so far,” said London-based Joshua Raymond, a market strategist at City Index Ltd.

The FTSE 100 index has rebounded 39 percent since March 3 as the German and French economies unexpectedly grew last quarter and better-than-forecast earnings from Goldman Sachs Group Inc. to Roche Holding AG boosted global stock markets. The global economy is “beginning to emerge” from a recession after aggressive action by central banks and governments, Federal Reserve Chairman Ben S. Bernanke said at a symposium in Jackson Hole, Wyoming last week.

BHP Billiton, the world’s largest mining company, added 2.6 percent to 1,633 pence. Rio Tinto, the third biggest, climbed 3.7 percent to 2,485 pence.

WPP added 5.2 percent to 530.5 as Deutsche Bank upgraded the shares to “buy” from “hold.”

Amlin

Amlin Plc added 3 percent to 365.7 pence as the biggest insurer in the Lloyd’s of London insurance market said first- half pretax profit rose 29 percent to 177.1 million pounds ($291.8 million). That beat the 133.5 million-pound median estimate of six analysts surveyed by Bloomberg.

Bunzl Plc, the biggest U.K. supplier of vending machines, advanced 4.5 percent to 577 pence as it said it is seeking acquisitions to spur growth in new regions and countries where it already operates.

To contact the reporter on this story: Adam Haigh in London at ahaigh1@bloomberg.net.