At the close: FTSE 100 index makes strong gains on the back of commodities

James Nickerson
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BHP Billiton Announces Record Financial Results
Mining stocks led the surge (Source: Getty)

The FTSE 100 index closed sharply higher on Wednesday, with the bounce-back led by mining companies with oil companies not far behind.

The UK's top blue-chip index closed 2.6 per cent up at 6,240 points, as the dead cat bounce in resources continued.

"Stock markets have been encouraged by a stabilisation in commodity prices which has picked up steam since the Chinese government announced plans to increase its budget deficit next year," said Jasper Lawler, analyst at CMC Markets.

"A rise in Chinese infrastructure projects as the government tries to meet its growth targets could bolster resource demand. China announced another step towards liberalisation of its financial markets on Wednesday with an extension to yuan trading hours in 2016."

Read more: FTSE 100 opens up as miners extend gains

Anglo American led the pack, its share price rising 9.06 per cent to 323.35p, while Glencore ended the session 8.45 per cent higher at 93.09p per share. BHP Billiton wasn't far behind, up 6.88 per cent at 778.1p per share.

Rio Tinto rose 6.11 per cent to 2014.5p per share, while Antofagasta and Fresnillo rose 4.07 per cent to 463.1p per share and 3.34 per cent to 712.5p per share respectively.

Oil companies also made strong gains, with BG Group rising 6.28 per cent to 988.1p per share, while BP rose 4.48 per cent to 360.4p per share. Royal Dutch Shell ended at 1,564.5p per share, a 4.79 per cent increase.

Read more: OPEC - Oil prices won't hit $95 until 2040

"We think commodities are due for a bounce, and that should help mining stocks," HED Capital managing director Richard Edwards said.

Standard Chartered's share price increased 4.14 per cent to 583.6p per share, as "improved sentiment towards China helped make Asian-focused Standard Chartered shares top risers on the UK benchmark outside of the commodities space," Lawler added.

Sports Direct was the only faller on the FTSE, dropping 0.36 per cent to 561p per share.

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