By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- U.K.'s FTSE 100 index headed for a
second straight day in positive territory on Thursday, as shares of
SABMiller rose after a well-received earnings report and miners
advanced on the back of encouraging Chinese manufacturing data.
The benchmark index gained 0.3% to 6,841.18, building on a 0.3%
advance from Wednesday.
SABMiller PLC (SBMRY) picked up 4.1% after the brewer reported a
slight increase in full-year profit. The company said its strength
in developing markets such as Africa and Latin America had held up
in the past 12 months, but that it sees ongoing weakness in Europe
and North America.
Mining firms were also on the rise after a
much-stronger-than-expected manufacturing report from China. HSBC
said the preliminary or "flash" version of its monthly purchasing
managers' index headline number rose a five-month high of 49.7 in
May from a final reading of 48.1 in April. Upbeat Chinese data tend
to support miners, as the country is a major user of natural
resources.
Shares of Antofagasta PLC picked up 2.3%, Rio Tinto PLC (RIO)
rose 1.4% and Glencore PLC (GLCNF) added 1.1%.
Royal Dutch Shell PLC (RDSB) (RDSA) shares were also in focus
after the company said it has canceled its "Scrip Dividend
Program", meaning all future dividends will be settled entirely in
cash, rather than a share-based alternative.
"This decision will allow for a more efficient share-buyback
program," the company said in the release.
Peter Hutton, analyst at RBC Capital Markets, said in a note
that it would be particularly positive for the A shares, because
Shell now can start to buy back those shares. Shell has
historically only bought back B shares. Shell A shares rose 1.2% in
London on Thursday, while the B shares fell 2.5%.
On a more downbeat note in London, shares of Royal Mail PLC
slumped 7.2% after the company said it faces a couple of headwinds,
including intense competition on the parcels side.
In data news, the Office for National Statistics said the U.K.
economy expanded by 0.8% in the first quarter, confirming a
previous estimate.
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