MARKET REPORT: Ferrexpo soars on hopes of an finish to Ukraine conflict

Ukraine-based iron ore miner Ferrexpo saw its shares hit a nine-month high with the election of Donald Trump. 

The world’s third-largest exporter of iron ore pellets rocketed 27.3 per cent, or 17p, to 79.2p as traders placed bets on Trump bringing a swift end to the war with Russia, which Trump said he would do in ‘one day’ after taking power.

Ferrexpo has continued to operate its iron ore mines in Ukraine, despite the invasion in early 2022. But it has had to continually deal with disruptions to its supply lines, which have weighed on the performance of the business.

Surging: Ukraine-based iron ore miner Ferrexpo saw its shares hit a nine-month high

‘Given its Ukrainian mine and processing plant, Ferrexpo currently encapsulates the potential of a settlement in Ukraine,’ said analysts at broker Peel Hunt.

‘A settlement, allowing far cheaper shipping of Ferrexpo’s pellets to markets, could see the shares recover back towards the 300p to 400p level where they traded in late 2020 to early 2022.’

As investors digested the US election result, the FTSE 100 fell 0.1 per cent, or 5.71 points, to 8166.68 while the FTSE 250 gained 0.4 per cent, or 76.66 points, to 20,446.70.

Firms with exposure to the US made big gains, with Holiday Inn owner Intercontinental Hotels surging 5.2 per cent, or 448p, to 9002p.

Rolls-Royce was also among the winners amid hopes it could cash in on rising US defence spending and demand from airlines for jets. 

Shares in Rolls rose 2.5 per cent, or 14p, to 574p – taking gains since ‘Turbo’ Tufan Erginbilgic took the reins at the start of last year to 475 per cent. 

He’s back: The return of Trump to the White House is seen as bullish for European defence stocks

That gave the British engineering giant, which powers the Royal Navy’s submarine fleet and makes engines for fighter jets as well as commercial airliners, a value of £47.6billion. Rival aerospace group BAE Systems gained 4.9 per cent, or 63p, to 1343p.

The return of Trump to the White House is seen as bullish for European defence stocks given his threat of forcing fellow Nato members to spend 2 per cent or more of their national output on defence.

One of the biggest gainers was construction equipment hire firm Ashtead Group, which climbed 5.6 per cent, or 332p, to 6300p. 

Founded in 1947, it makes most of its money in the US, where it provides gear for filmmaking and TV production, among other things. Elsewhere, mid-cap insurer Lancashire rose 6.5 per cent, or 41p, to 670p after its upbeat trading update shrugged off recent losses from storms and hurricanes in the US and unveiled a £140million special dividend for investors. 

Its blue-chip rival Beazley rose 1 per cent, or 8p, to 778p after reporting a 7 per cent rise in premiums to £3.6billion for the nine months to September, offsetting a predicted hit from hurricane-related claims of £97million to £136million.

White goods seller AO World saw the City watchdog approve its £10million takeover of second-hand CD, DVD and tech retailer MusicMagpie. AO World shares rose 0.95 per cent or 1p to 105p while MusicMagpie was flat at 8.75p.

Meanwhile pollster YouGov’s shares rose 2.3 per cent, or 10p, to 453p after it reported sales had risen 30 per cent to £335million for the year to July, with investors shrugging off a 21 per cent fall in pre-tax profit to £45million.