UK shares advanced, cutting a weekly decline for the FTSE 100 Index as Imperial Tobacco Group Plc soared and worries subdued over the “peripheral” countries in the euro area.
Imperial Tobacco added 3.1 after announcing it was in negotiations to buy some assets and brands controlled by US firms. Kazakhmys Plc dropped 2.7% as mining stocks traded in London slid.
The FTSE 100 Index increased 17.8 points or 0.3% to 6,690.17 at the close in London. The stocks measure tumbled 2.6%the week ended July 11, the biggest weekly decline since March, as investors assessed valuations that touched near peak levels since December 2009 and in the wake of financial distress in Portugal. The FTSE All-Share Index that’s a broader equities measure and Ireland’s ISEQ Index each added 0.2% on Friday, Bloomberg reported.
A survey showed that prices of homes grew slower in June as new mortgage laws hurt activity and some of the most expansive markets in London posted losses. Data from Acadata Ltd showed that values in England and Wales increased 0.7% from May. Prices ascended 9.6% from the previous year to 268,637 pounds or $459,900, according the compilation by the property research company and LSL Property Services Plc.
Imperial tobacco rose to 2,740 pence it said was in discussions with Reynolds American Inc. and Lorillard Inc. for an agreement in case the firms merged. The manufacturer of Gauloises cigarettes is preparing to inject $7 billion into the acquisition of certain brands made by Lorillard and Reynolds.
However, a losses in mining stocks including Rio Tinto, Anglo American and Randgold prevented the FTSE 100 from going up higher. Traders said mining stocks fell as a result of lower copper prices following a likely slowdown in China, the biggest market for metals in the world, according to Reuters.
The FTSE 100 had declined for the previous four days.
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