MARKET REPORT: Ferrexpo soars in hopes of ending war in Ukraine

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

The world’s third-biggest exporter of iron ore pellets soared 27.3 percent, or 17 pence, to 79.2 pence, as traders bet Trump would quickly end the war with Russia, which Trump said what I would do in “one day” after gaining strength.

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

“Given its mine and processing plant in Ukraine, Ferrexpo currently holds the potential for a deal in Ukraine,” analysts at brokerage Peel Hunt said.

“A deal that allows Ferrexpo pellets to be shipped much cheaper to markets could see the shares recover to the 300 to 400 pence level they were trading at between late 2020 and early 2022.”

As investors digested the US election result, the FTSE 100 fell 0.1 per cent, or 5.71 points, to 8,166.68, while the FTSE 250 gained 0.4 per cent, or 76.66 points, up to 20,446.70.

Companies with exposure to the United States made big gains, with Holiday Inn owner Intercontinental Hotels rising 5.2 per cent, or 448 pence, to 9,002 pence.

Rolls-Royce was also among the winners amid hopes it could cash in on rising U.S. defense spending and airline demand for planes.

Stocks in rolls rose 2.5 per cent, or 14 pence, to 574 pence, boosting gains since ‘Turbo’ Tufan Erginbilgic took the reins early last year by up to 475 per cent.

That gave the British engineering giant, which powers the Royal Navy’s submarine fleet and makes engines for fighter jets and commercial airliners, worth £47.6bn. Rival aerospace group BAE Systems gained 4.9 per cent, or 63 pence, to 1,343 pence.

Trump’s return to the White House is seen as bullish for European defense stocks, given his threat to force NATO members to spend 2 percent or more of their national output on defense.

One of the biggest winners was construction equipment rental company Ashtead Group, which rose 5.6 per cent, or 332 pence, to 6,300 pence.

Founded in 1947, it makes most of its money in the United States, where it provides equipment for film and television production, among other things. Elsewhere, mid-cap insurer Lancashire rose 6.5 per cent, or 41 pence, to 670 pence after its upbeat trading update ignored recent US storm and hurricane losses and revealed a special dividend of £140 million 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 £3.6bn for the nine months to September, offsetting a hit Expected hurricane-related claims from £97 million to £136 million.

Appliance seller AO World has seen its £10m takeover of second-hand CD, DVD and technology retailer MusicMagpie approved by the City watchdog. AO World shares rose 0.95 per cent or 1p to 105p, while MusicMagpie was flat at 8.75p.

Meanwhile, shares in pollster YouGov rose 2.3 per cent, or 10p, to 453p after it reported sales had risen 30 per cent to £335m in the year to July, and Investors ignored a 21 per cent drop in pre-tax profit to £45m.