iNVEZZ.com, Monday, May 12: Britain’s blue-chip index has started the week on an upbeat note, propped up by miners which have gained ground amid higher metals prices and following a JPMorgan upgrade of heavy-weighted miner Rio Tinto (LON:RIO).

Among individual movers, shares in British Sky Broadcasting Group (LON:BSY) have posted a drop after the company confirmed that it was in talks with 21st Century Fox over the potential acquisition of Sky Deutschland and Sky Italia.

Miners lead FTSE 100 higher

As of 12:00 BST, the UK’s benchmark index had added 28.56 points to be 0.42 percent up at 6,843.13.
Miners have helped the Footsie stay in positive territory today on account of higher metals prices and after JPMorgan, which has an ‘overweight’ rating on Rio Tinto, added the miner to its list of top picks for European stocks. As of 12:12 BST, Rio Tinto’s share price had climbed 4.05 percent to 3,317.50p, leading London-listed miners higher. Shares in Antofagasta (LON:ANTO) and BHP Billiton (LON:BLT) have also posted notable gains, with Antofagasta’s share price adding 2.67 percent to 789.50p and BHP shares trading 2.45 percent higher at 1,943.00p.

Gains in the broader market however have been capped by the ongoing tension in Ukraine where election officials said that during yesterday’s referendum in the eastern Donetsk region, 89 percent had voted in favour of self-rule.

“Macroeconomic indicators are showing that the UK is continuing to grow quite rapidly, but tensions in Ukraine are influencing appetite for risk and some of the earnings numbers coming out of both Europe and the UK have been quite mixed,” Daniel McCormack, strategist with Macquarie, told Reuters.

BSkyB share price falls

Shares in BSkyB have taken a hit after the company confirmed that it was in early talks with Rupert Murdoch’s 21st Century Fox over the possible acquisition of its pay-TV assets in Italy and Germany. (BSkyB share price: Company confirms talks with Fox over Sky Deutschland, Italia) The Financial Times quoted John Karidis, an analyst at Oriel Securities, as explaining that the move aimed to defend Sky’s “existing value, not create much extra value”.

“Indeed, the rather poor financials of Sky Deutschland and Sky Italia make us think this deal may be more to help them than [Sky],” the analyst added. BSkyB’s share price has shed 2.47 percent to 868.00p so far today. Shares in rival BT Group (LON:BT.A) have also declined, dropping 2.12 percent to 374.41p as of 12:15 BST.

The FTSE 100 index was 0.38 percent up at 6,840.50 points as of 12:51 BST on May 12, 2014.

Open Your ISA Online in 5 Minutes With Hargreaves Lansdown

Prices can go up and down meaning you can get back less than you invest. This is not advice. Dealing services provided by Hargreaves Lansdown.