Platinum producers shine on fears of production cuts at Anglo

The world's most expensive metal was yesterday more expensive than it has been for 23 years, amid fears that Anglo American, will next month dramatically scale back its platinum mining plans.

With the platinum price jumping to its highest level since March 1980 ­ at $726 an ounce ­ companies which mine or refine the precious metal saw big share price gains. Anglo American, the mining giant whose AngloPlat subsidiary is threatening the cuts, was up 41p to 1,166p. The company said over the summer that it might abandon some of its more ambitious plans to expand platinum production in South Africa if the rand (in which it incurs wage costs) did not weaken against the dollar (in which it sells the extracted metal). With the rand continuing to strengthen, speculation is that AngloPlat will next month formally abandon its plan to increase platinum production by three-quarters by 2007.

Lonmin, the mid-cap platinum miner, jumped 33p to 976p, and Johnson Matthey, which refines platinum and other precious metals, was 31p firmer at 966p.

The FTSE 100 surged 64.0 points, closing at 4,274 thanks to the three-figure gain in early trading of the Dow Jones Industrial Average. The data that caused the excitement, US employment figures, showed the number of jobs outside farming grew by 57,000 in September and fell less in August than first reported. Yesterday, only 10 blue-chip stocks ended down, mainly those least sensitive to the economy. Centrica, owner of British Gas, was the weakest, off 1.75p to 187.25p.

While the week had begun badly, the FTSE 100 in fact closed up almost 3 per cent over the five sessions. The banking sector has been the star performer and it extended its gains yesterday. Barclays, still the subject of takeover rumours, was 11p firmer at 504p. And Lloyds TSB was 7.25p up at 444.5p. The company's house broker, ABN Amro, gave an early insight into what will be said on Monday when Eric Daniels, Lloyds chief executive, outlines his plans for the life insurance arm, Scottish Widows. Life products are likely to be customised for sale through Lloyds branches, it seems, which may mean some dilution of the Scottish Widows brand.

Goldman Sachs, the aggressive investment bank, was punting shares in InterContinental Hotels, telling clients they should get in ahead of the third quarter trading updates from US hoteliers including Marriott Hotels. The broker expects news on an improvement in the US market, where InterContinental earns around 60 per cent of its profits. Word is the company has been able to raise room rates steeply in its New York hotels in recent weeks. The group's shares were pushed up 17p to 505p, and there was also a positive effect on Hilton, which rose 8.25p to 196.5p. The chairman of De Vere, though, was a seller of his hotel company's shares, which were unchanged at 385p. Lord Daresbury sold 393,000 shares at 378.5p apiece.

Dealers reported switching from ebookers into lastminute.com, following the disappointing trading news from ebookers on Thursday. Its shares were again the worst performers in the mid-cap index, off 36.5p at 473.5p. But lastminute.com was back up tuppence at 257.5p as investors decided that, while it too may have had a slightly disappointing August, it would have had to warn the market by now if there would be any significant impact on financial results for the year. Of course, lastminute.com is also seen as the stronger internet brand of the two and is more likely to attract the long-rumoured bid from a US giant.

Investors, looking ahead to trading updates next week from a number of retailers, sent Mothercare shares to their best level in over a year. Up 13.5p to 227.5p, they reflect optimism for the turnaround strategy being implemented by Ben Gordon, the chief executive who joined from Disney. Carphone Warehouse, which updates the market on Wednesday, was up 5.25p to 125.75p in the belief it is benefiting from the mobile phone operators' price war. And Marks & Spencer closed at 312.5p, up 3p, ahead of the national rollout of its credit card, &more.

Greene King frothed up 3.5p to 850p on hopes the warm weather led to bumper sales of cool beer.

Thursday's £82m placing by Intermediate Capital, the buyout financiers, was starting to look as if it might have been underpriced after the company's shares surged again yesterday. The fundraising, which will pay down debt, was priced at 915p, but Intermediate Capital shares jumped 60p to 1,085p.

Directors' dealings bolstered Faupel, the home furnishings maker, whose shares were up 0.75p to 24.75p on news that the chief executive, Lawrence Mead has spent £38,000 to take his holding over 8 per cent. And Mark Kay, executive director at ROK property solutions, bought 75,000 ROK shares, helping them recover 3.5p to 242p.

International Brand Licensing, maker of Admiral sportswear and luggage, more than doubled in value yesterday ­ the shares went up 11.5p to 20p, giving the company a new market capitalisation of £6m. The reason? Wal-Mart-owned Asda has licensed the Admiral brand to become, effectively, its sports brand alongside the hugely successful George@Asda fashion range.