FTSE 100 index just touched 2-month highs! Here are the top gainers

The FTSE 100 index crossed 7,200 today for the first time in two months. These levels were last seen before the pandemic. 

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

sdf

It was a very good day for the FTSE 100 index, which touched a two-month high today, of 7,208. It was shy of beating the August high by only some 26 points, which was a significant milestone in itself. The last time that the index saw values of over 7,200 was before the pandemic in February 2020. 

Miners claim top spots

Interestingly, four of the five top gainers are multi-commodity miners, which have been through a challenging time at the stock markets recently. A weaker outlook for metal prices as China’s demand slows down has impacted them. Additionally, investors have also been diffident on rising risks as the policy stimulus gets withdrawn as well as due to rising inflation. 

But the fact that the biggest risers today were all miners is not something I can dismiss easily. To me it suggests possibly some return of confidence. It is true that most of them saw pretty steep share price falls recently. That makes them more affordable now. But I reckon that there may also be more faith in the broader stock markets, which have managed to remain stable despite a number of growing risks. 

BHP and Rio Tinto gain on climate action

Besides this, most of the gainers also have company specific developments, that possibly went in their favour. The biggest gainer was the Anglo-Australian company BHP, which saw a 3.7% increase following its investors’ support for its climate change roadmap. It is now targeting being a net-zero emissions company by 2050. 

Rio Tinto, another Australian miner, was the next biggest gainer with similar gains to BHP. It too has made progress on climate change action. The miner has developed a technology that allows production of low-carbon steel. This is done by substituting biomass for coking coal during production. A pilot project is currently underway to test the technology. 

FTSE 100 miner Anglo American to produce more diamonds

Anglo American is the third biggest gainer, with a rise of 3.4%. This follows news that De Beers, its diamond company, and the Namibian government’s joint venture, called Namdeb, said that its mines’ lives have been extended to 2042. The earlier plan was that they would go on until 2022. This will allow for mining of eight million carats worth of diamonds. With consumers expected to spend more as the economy recovers, discretionary demand for items like diamonds is expected to rise. Additionally, increased production could hold the company in good stead as well. 

Making metal of refuse

The Swiss miner Glencore was the next biggest riser and saw an approximately 3.4% increase. The miner, too, is looking at more environmentally sustainable ways of production. It now wants to build an electronics recycling facility in the UK. The value of metals like iron, copper, and gold in such waste runs into billions of dollars according to the United Nations, and only a fraction is presently recovered. This is also a far less polluting way of obtaining metal than through mining and smelting. 

The fifth biggest gainer was International Consolidated Airlines Group, which saw a 3.3% increase on improved prospects for travel.  

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Manika Premsingh owns shares of Anglo American, Glencore, International Consolidated Airlines Group and Rio Tinto. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Two business people sitting at cafe working on new project using laptop. Young businesswoman taking notes and businessman working on laptop computer.
Investing For Beginners

Up 10% in a day, this FTSE 250 stock still looks undervalued to me

Jon Smith explains why a FTSE 250 finance stock has soared higher and flags up reasons why this might not…

Read more »

Rolls-Royce's Pearl 10X engine series
Investing Articles

Rolls-Royce shares are close to reaching £10. Is it too late to buy?

Rolls-Royce shares have come a long way. With the price within spitting distance of £10, our writer considers whether he…

Read more »

Close up of manual worker's equipment at construction site without people.
Investing Articles

With H1 profits back on track, is this FTSE 250 housebuilder ready to bounce back?

Operating profits are down 22% at Vistry. But as cost issues give way to government support, could the FTSE 250…

Read more »

Investing Articles

2 fantastic UK growth stocks to consider for a Stocks and Shares ISA

Looking for opportunities for a Stocks and Shares ISA portfolio? Our writer shares two ideas from the London Stock Exchange.

Read more »

DIVIDEND YIELD text written on a notebook with chart
Investing Articles

Investors could target £8,840 of annual dividend income from 5,851 shares in this FTSE 250 high-yield star!

Shares in this FTSE 250 stock generate a much higher dividend yield than the index average and can produce potentially…

Read more »

Arrow symbol glowing amid black arrow symbols on black background.
Investing Articles

HSBC’s share price has dipped 5% to just over £9, so should I buy more right now?

HSBC’s share price has dipped in recently, but this could signal a bargain to be had. I ran the key…

Read more »

many happy international football fans watching tv
Investing Articles

Is this FTSE 250 stock gearing up to more than double its market cap by October?

Our writer considers the implications of a recent stock market announcement for the share price of this FTSE 250 retailer.…

Read more »

Inflation in newspapers
Investing Articles

3 overlooked UK shares growing dividends faster than inflation

Mark Hartley highlights three lesser-known UK shares offering inflation-beating dividends, while noting key risks investors should watch.

Read more »