London’s blue-chip FTSE 100 index traded higher on Tuesday (September 9), supported by strong gains in mining and retail stocks. Investor sentiment was fueled by the announcement of a major transatlantic merger in the resources sector, while upbeat corporate earnings and a solid retail update also played a role.
The spotlight was firmly on Anglo American, whose shares rallied 7.71% to close at £2,459. The surge followed confirmation of a “merger of equals” with Canada’s Teck Resources, forming one of the world’s top five copper producers valued at over $50 billion.
The combined entity, Anglo Teck, will be headquartered in Vancouver but maintain its primary listing in London. The firms expect to generate $800 million in annual synergies, with Anglo shareholders set to receive a $4.5 billion special dividend ahead of completion.
The news also buoyed peers: Glencore climbed 3.51% to £296.55, while Antofagasta gained 2.05% to £2,196.
The FTSE 100 index advanced 0.2% or 18.69 points, reaching 9240.13, outperforming initial expectations of a flat start. Endeavour Mining added further strength, gaining £30 to £2804, reflecting momentum from record gold prices above $3650 an ounce.
Property stocks also contributed, with Segro rising 1.80% to £634 after a Goldman Sachs upgrade to Buy, alongside a raised price target of £730. Financials such as NatWest and Berkeley Group posted modest gains of around 1%.
On the retail front, Dunelm reported a 2.7% rise in annual pre-tax profit to £211 million, despite inflationary headwinds. Sales grew 3.8% to £1.77 billion, with digital channels accounting for 40% of revenues.
The homewares chain announced a final dividend of £28, raising the annual payout to £44.5, alongside a previously declared special dividend of £35. Shares rose on optimism about its ability to navigate a volatile consumer market, though management flagged caution ahead of the “golden quarter.”
In transport, Mobico slumped after unveiling weaker half-year results and a plan to integrate its UK coach operations into Spanish subsidiary ALSA. Pre-tax profit dropped to £19.8 million from £28.8 million, while shares sank nearly 20%.
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The British Retail Consortium (BRC) reported a 3.1% increase in August retail sales, boosted by warm weather and the recent interest rate cut. However, it warned that the later-than-expected Budget, set just days before Black Friday, could dent consumer confidence during the crucial holiday season.
Robust performances from Anglo American and Glencore helped the FTSE 100 advance, despite weakness in transport stocks. Sentiment was shaped by commodity prices, retail earnings, and news from fiscal policy, and volatility is expected to persist heading into the final quarter of the year.