London stocks rise on Middle East peace optimism

UK stocks close higher as energy sector gains tracking rise in oil prices

Market Overview and Sector Performance

April 16 (Reuters) - UK's main stock indexes closed higher on Thursday, lifted by energy stocks, as doubts about lasting resolution in the Middle East sent oil prices higher. 

A senior Iranian official told Reuters that the negotiation in Islamabad increased hopes for a second round of talks, though added that fundamental differences remained over its nuclear program. 

The blue-chip FTSE 100 index closed 0.29% higher at 10,589.99 points, while the midcap FTSE 250 rose 0.5%.

Energy and Mining Sector Gains

Oil and Gas Companies

• Oil giants BP and Shell gained 3.9% and 1.2%, respectively, as Brent crude rose over 3%.

Industrial Metals and Mining

• Industrial metal miners rose 0.8%, tracking extended gains in base metals aluminium and copper.

• Rio Tinto rose 1.7%; Glencore and Anglo American  up 0.5% each.

Retail and Consumer Goods

Supermarkets and Retailers

• Tesco climbed 4.7% even as the food retailer said profit outlook was clouded due to the Middle East conflict.

• The broader personal care, drug, grocery index was up 0.4%.

Financial Sector Movements

Banks

• Heavyweight banks dropped 0.3%; lender Natwest Group fell 1%; Barclays down 0.7%.

Asset Managers

• Money manager Ashmore down 4.8% after the U.S.-Iran war led to net outflows.

Other Notable Movers

Construction and Materials

• Construction group Morgan Sindall jumped 7.3% after lifting profit outlook, sending construction and materials index up 1.8%.

Travel and Leisure

• EasyJet slips 5% after it warned of bigger first-half loss.

Corporate Activity

Mergers and Acquisitions

• Product testing firm Intertek jumped 9% after rejecting 7.93 billion pounds ($10.74 bln) buyout deal from Swedish private equity firm EQT AB.

(Reporting by Utkarsh Tushar Hathi; Editing by Sahal Muhammed)