UK stocks experienced modest growth on Tuesday, bolstered by a surge in mining and energy stocks due to robust US manufacturing data. The improvement was also attributed to the first reported growth in general activity among British manufacturers in 20 months, sparked by rekindling demand within the local market.
According to the S&P Global/CIPS UK Manufacturing Purchasing Managers' Index (PMI), there was an increase to 50.3, rising from the preliminary 49.9 in March and the previous 47.5 in February.
The FTSE 100, indicating the overall health of the UK stock market, increased by 24 points or 0.3 percent, reaching 7,976, as market activity resumed full swing after a prolonged holiday weekend.
In the mining sector, Anglo American, Antofagasta, and Glencore witnessed a rise between 1 to 3 percent. In the energy sector, both BP Plc and Shell saw significant gains, with BP increasing by 2.5 percent and Shell by 2.9 percent. This was influenced by the price of US crude futures reaching $85 a barrel in New York for the first time since last October, following amplified geopolitical risks and signs of increasing demand from the US and China.
However, not all sectors were winners. Housebuilders such as Persimmon, Taylor Wimpey, and Barratt Developments saw declines of over 2 percent, 1.8 percent, and 1.4 percent respectively. This followed the surprising fall in UK house prices in March due to raised interest rates. In contrast to a 0.7 percent rise in February, the Nationwide Building Society's house price index registered a 0.2 percent drop in March, significantly below the projected 0.3 percent gain.
Meanwhile, Origin Enterprises, an international agri-services group, showed about a 1 percent increase following the naming of Colm Purcell as its new Chief Financial Officer (CFO).
