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FTSE modestly higher midafternoon

MIDAFTERNOON REPORT: Headline shares turned modestly higher midafternoon, with buoyant miners and oil heavyweights counteracting uncertainties in financial markets on both sides of the Atlantic, and with Wall Street opening lower.

At 2:30pm, the FTSE100 was up 27.8 points at 5,498.5 with the FTE250 off 39.6 points at 9,094 and the FTSE Smallcaps 3.7 points lower at 2,791.4.

NEW YORK

In opening trade, the Dow Jones Industrial Average was off 2.52 points to 11,410.35, while the S&P500 was little changed at 1,272.48 and the Nasdaq Compossite was down 1.26 points at 2,360.71.

Orders for US-made durable goods surged in July, rising 1.3% on strong transportation equipment demand, the Commerce Department reported today.

LONDON MARKETS

Chilean copper miner Antofagasta this morning revealed that high commodity prices and increased production drove first-half profits up 15% to $1.66bn, despited an increase in operating costs. Revenues at the group rose 24% to $2.4bn.

The company said that the fundamentals for both the copper and molybdenum markets are firm.

Antofagasta shares added 22p at 592p, while other sector heavyweights also benefited, with Anglo American up 54p at 2,853p, Rio Tinto 39p better at 5,189p, ENRC up 26p at 1,027p and Xstrata 11p better at 3,034p.

On the New York Mercantile Exchange this afternoon, October crude was up $2.98 at $119.25 per barrel, on fears that Tropical Storm Gustav would return to hurricane strength and as the dollar weakened.

Heavyweight BP rose 7p to 523.25p and Shell was up 19p at 1,858p.

Also among the oil fraternity, explorer Tullow Oil, which has extensive operations across Africa, saw first-half profits surge 181% to £187m as revenues climbed 33% to £378m. The group said it is optimistic about the prospects in Ghana and Uganda.

Tullow shares were up 18p at 811.5p, with peer Cairn energy 117p stronger at 2,897p.

Oil services company Petrofac reported better-than-expected first-half financial results, as net profit jumped 57% to $121.2m from a year ago, helped by strong demand, adding it is well positioned to deliver financial results at the top of end of expectations. The shares gained 27p to 619.5p.

Amongst financial issues, insurer Admiral Group succumbed to profit-taking after yesterday's results, sliding 37p to 922.5p.

Other insurers showed weakness, with Aviva off 2.5p at 498.5p and Prudential down 5p at 534.5p.

Taylor Nelson Sofres today reported underlying revenue growth of 5.1% for the first half.
TNS, which has been fighting off a £1.1bn hostile takeover bid from advertising group WPP, said its order book gave it confidence in its full-year target to increase underlying sales by about 6%. TNS shares were 2.75p lower at 266p, while WWP gained 3p to 509.5p.

Taylor Wimpey, one of the biggest UK housebuilders, plans to scrap its interim dividend payment after first-half profits plunged 96% to just £4.3m.

The builder, which expanded aggressively into the US as America's housing market slowed, also announced a write-down on its landbanks in the UK, North America and Spain totalling £690m. The company said it remained in full compliance of its debt covenants.

Taylor Wimpey shares dipped 2.25p to 49.75p, dragging down the rest of the sector with it.

Barratt Developments fell 0.25p to 135p, Bellway was 10p lower at 592.5p and Persimmon fell 5.5p at 349p.

Anglo-Danish firm G4S, the world's biggest security and guarding company, was upbeat about its prospects, despite the global economic slowdown. The group reported a 13.5% rise in pre-tax profits to £109m as revenues rose 26% to £2.7bn. The shares added 8.75p at 220.25p.

Newspaper group Johnston Press, down 3p at 48p, announced it has cancelled its dividend after unveiling a loss of £53.7m in the first half as revenues fell 6.3% to £293.1m as advertising revenues tumbled. The group also recorded an impairment charge of £109m.

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