Bid for platinum firm sends FTSE up

By MoneyhighStreet Staff. Published on August 6, 2008 This post currently has no comments.

World stock markets
Huge gains from platinum producer Lonmin were enough to ensure the FTSE 100 closed up today (August 6th).

The blue chip index surged in afternoon trading, rarely dipping below 5,450. It eventually closed at 5,486.80 up 32.30 points.

Most notably, shares in platinum producer Lonmin climbed nearly 50 per cent to close at 3,424. The shocking rise was prompted when Xstrata made a cash bid of 3,300p per share for the company. While the bid was rejected, it was enough to push the price up.

London-based analyst Jason Fairclough at Merrill Lynch & Co, is reported by Bloomberg to have explained: "Despite the recent fall in the platinum price, we believe that the market will see this transaction positively and expect to see other platinum producers trade higher on the back of this."

Another major gainer on the market today was brokerage firm Collins Stewart. It saw its share price climb over 30 per cent to 100 on the back of news that it had received a third-party approach that it confirmed it was considering.

Elsewhere, TV channel ITV saw its shares slump nearly six per cent to 43.60 after it warned that it was to reduce its dividend and its growth targets. The move followed losses of £1.5 billion in the first half of the year.