News

May 11, 2008

That Was The Week That Was ... In London

By Henry Sandford

It was a busy week for the mining sector in London. There were two significant new listings and widespread strength in share prices. The coal sector in particular was in favour. Among the majors, Rio Tinto (LSE: RIO), and BHP Billiton (LSE: BLT) both gained five per cent to 6,402p and 1,975p respectively, as BHP prepared to submit documents to European Union regulators regarding its proposed acquisition of Rio. Anglo American (LSE: AAL) and Xstrata (LSE: XTA) were left behind, with the former down one per cent to 3,382p and the latter virtually unchanged on 4,186p despite the release of its first quarter results.

Looking to the fully listed large cap companies, Eurasian Natural Resources Corporation (LSE: ENRC) rose nine per cent to 1,307p as Kazakhmys (LSE: KAZ) rejected a £7 billion bid from the company. The bid valued Kazakhmys well below its current market capitalisation, and Kazakhkys shares responded with a rise of seven per cent to 1,786p. Yamana Gold (LSE: YAU) rose 14 per cent to 757p on the back of impressive first quarter results.

The London market saw two newcomers in the large...