LONDON: London's blue-chip index rose on Monday, as higher commodity prices lifted oil and mining stocks, while shares in HSBC gained after the Asia-focussed bank reported a higher-than-expected profit.
The FTSE 100 gained 0.5% in morning trade, with HSBC adding 0.6% to hit a four-month high after the bank reported a 74% rise in third-quarter profit and announced a share buyback of $2 billion.
Miners were the biggest boost to the index, adding 1.7% as copper prices rebounded from a fall last week, as inventories in Shanghai exchange warehouses dropped to a more than 12-year low.
Oil majors BP and Royal Dutch Shell climbed 1.6% and 1.3% respectively, as crude prices hit multi-year highs amid tightening supply and rising fuel demand.
Bolstered by soaring oil and gas prices fuelled by a supply shortage, UK's energy sector has gained nearly 38.8% this year, outperforming the 12.2% rise in the blue-chip FTSE 100 index.
"Whatever you raise interest rates to in the UK, it is not going to have a material impact on the price of gas or oil, because there is a genuine shortage," said Stuart Cole, macro economist at Equiti Capital. "So if you're a producer, it is happy days."
The domestically focussed mid-cap index was flat, with Darktrace Plc among the worst performers on the index, falling 11.1%, after Peel Hunt initiated coverage with "sell" rating.
Africa-focused Tullow Oil Plc gained 1.6% after it named Phuthuma Nhleko, former boss of South African telecom major MTN Group, the chairman-designate on Monday.
Gold mining company Petropavlovsk PLC fell 3.3% after it reported a fall in year-on-year gold production in the third quarter.
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