Britain's bluechip FTSE 100 index edged up on Monday to touch its highest level in more than 13 months on the back of gains in mining stocks and Barclays, which was boosted by an upgrade. The index ended 0.2 percent higher at 6,809.13 points, having hit its highest level since June 25 last year earlier in the session at 6,829.47.
Analysts said the market also got some support from a survey from card company Visa UK saying that British consumer spending picked up last month, bucking other signs that Britons have become more cautious since June, when they voted to leave the European Union. "The FTSE 100 has broken above 6,800 as data from Visa shows consumer spending picked up in July, clearly undaunted by the 'risks' of Brexit," CMC Markets analyst Jasper Lawler said.
"Mining companies are being helped by a belief that government and central bank stimulus will support commodity demand." he said. Miners were the top sectoral gainers, with the UK mining index rising 2 percent. BHP Billiton, Anglo American, Rio Tinto and Antofagasta
rose 1.7 to 3.3 percent following a rally in the price of key industrial metals and iron ore. British bank Barclays also rallied, climbing 3.6 percent after Exane BNP Paribas upgraded its rating on the lender to "outperform" from "neutral". "While the valuation of the sector is still not that compelling, we think Barclays offers a credible capital plan and a clear route to improving returns," analysts at Exane BNP Paribas said in a note.
British banks, up 2 percent, had slumped after Britons voted on June 23 to leave the European Union, though they are now only a shade below their pre-Brexit level. Drugmaker Hikma was the bluechip index's worst performer, falling 4.2 percent and continuing its sell-off from last week when its shares slumped 16.8 percent on Thursday after it warned on its profit at its generic drugs unit.
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