By Sara Sjolin, MarketWatch
LONDON (MarketWatch) — Shares of Eurasian Natural Resources Corp. surged after bid talks on Friday, while the broader U.K. stock markets broke a five-day losing streak after banks and miners moved higher.
The FTSE 100 index /zigman2/quotes/210598409/delayed UK:UKX -0.38% rose 0.7% to close at 6,286.59, after spending the rest of the week mired in the red. On the week, the index closed out 1.5% lower, as worries that weak U.S. and China data signaled a slowdown in global growth.
U.K. mining firms in particular were among major decliners earlier in the week, but rebounded on Friday.
Shares of Eurasian Natural Resources Corp. soared 27%, after one of the miner’s founding shareholders Alexander Machkevitch said he is considering making a bid for the company.
Shares of Kazakhmys PLC /zigman2/quotes/208098927/delayed UK:KAZ +0.25% , which owns a 26% stake in ENRC, rallied 24%.
Cliffs Natural Resources Inc.
Other mining firms were also moving higher. Fresnillo PLC /zigman2/quotes/201300065/delayed UK:FRES +2.85% gained 2.9%, Vedanta Resources PLC picked up 6.1% and heavyweight Rio Tinto PLC /zigman2/quotes/208934945/delayed UK:RIO -0.15% /zigman2/quotes/200083756/delayed AU:RIO -0.84% /zigman2/quotes/202627887/composite RIO -2.03% added 1.5%. Metals prices were mixed.
Oil firms advanced, as oil prices rose on reports the Organization of the Petroleum Exporting Countries may hold an emergency meeting to discuss the recent slump in oil prices. BP PLC /zigman2/quotes/207305210/composite BP -2.06% gained 1.1% and Royal Dutch Shell PLC /zigman2/quotes/204253697/delayed UK:RDSB +0.03% /zigman2/quotes/207682964/composite RDS.B -1.52% eked out a 0.5% gain.
Shares of luxury retailer Burberry Group PLC /zigman2/quotes/205386705/delayed UK:BRBY +0.58% /zigman2/quotes/203108786/delayed BURBY +2.02% climbed 1.4%, after Goldman Sachs added the firm to its conviction buy list “following significant share price underperformance in a period when business fundamentals remain robust.”
Banks were among other notable gainers, rising with the broader European financial sector. HSBC Holdings PLC /zigman2/quotes/203901799/delayed UK:HSBA +1.14% /zigman2/quotes/202687335/delayed HK:5 0.00% added 2.4%, Royal Bank of Scotland Group PLC gained 2.4% and Standard Chartered PLC /zigman2/quotes/200125072/delayed UK:STAN -0.02% climbed 0.9%.
On a more downbeat note in London, Tesco PLC /zigman2/quotes/203761082/delayed UK:TSCO -0.57% /zigman2/quotes/207784767/delayed TSCDY +0.99% lost 0.7%, after Standard & Poor’s Ratings Services cut the supermarket retailer’s credit rating to BBB+ from A-.
“We believe that, in light of currently difficult industry conditions, U.K.-based retailer Tesco PLC will continue to see a trend of weaker profitability and top-line pressure,” the analysts said.
Outside the major index, shares of Spectris PLC /zigman2/quotes/204153035/delayed UK:SXS -1.02% sank 14%, after the engineering firm lowered its revenue forecast for 2013.