Kazakhmys, the miner, climbed out of of the pit after a torrid couple of days, as Credit Suisse said that miners exposed to copper were poised for a fourth-quarter rally as metal prices rise.

“A break-out in copper above $4 per pound should send a clear message that the equity markets are significantly undervaluing our copper producers,” the broker said. Kazakhmys shares were up 61p to £15.24.

Credit Suisse said that copper was likely to be the big call for the fourth quarter because it is the bellwether for the industry, representing 30 to 50 per cent of earnings for London-listed diversified miners such as Anglo-Ameri-can and BHP Billiton and 80 per cent for Kazakhmys, Freeport-McMoRan and Antofagasta. Shares in Antofagasta were up 33p at 836½p.

Northern Rock led the charge on the upside, adding 32½ per cent to top the FTSE 100 leaderboard for yet another day, as funds built stakes in the stricken mortgage lender, encouraged by the Treasury agreeing to extend its guarantee arrangements for the bank.

Shares in Woolworths rose 1¾p to 20½p, following rumours that Wm Morrison is considering a bid for Woolworths. The rumour stems from an analysts’ note earlier in the week that said “UK grocers might be interested in a tie-up with London-based Woolworths”. One analyst, however, dismissed the rumour as “a load of nonsense”. Morrisonsshares lost 1p to 286½p.

Also on the upside, Schroders, the fund manager, put on 81p to £15.00 as traders referred to the stock as a “chart breaker”, after record highs in US markets overnight.

British Airways was up 19¼p, or 4.6 per cent, at 439p. One trader said the rise could have been the result of positive comments about the sector in an industry magazine and a move towards a period of business travel, away from the negative publicity that the air-line endured during the summer. Traders said that the sector was benefiting from deal activity and an improving economic backdrop for cyclicals.

Carphone Warehouse, the FTSE 100 newcomer, experienced a lift, too, up 9¼p to 352p after a mixed trading update that included a dramatic acceleration in its profitable unbundled broadband rollout.

On the downside, ITV shares fell 1½p to 104¼p, as Goldman Sachs downgraded the commercial broadcaster to neutral from buy, citing weakening advertising momentum. It lowered its price target to 108p from 125p.

HBOS was among the biggest fallers, with Lehman Brothers downgrading the stock to underweight from overweight. The shares fell 29p to 926p. Barclaysfell 10p to 655½p, while Lloyds TSB dipped 7½p to 563½p.

Standing out among the losers, Expe-rian slipped 38p to 505p as the credit information company signalled that the revenue environment was tougher. One trader cited rumours that Experi-an could be a break-up target.

Resolution lost 5p at 680p, as the life insurer said it had rejected an approach from rival Pearl.

— New York: Wall Street stumbled through a difficult session as profit warnings and news of manufacturing delays from Boeing dragged down the Dow Jones industrial average. It closed down 85.80 points at 14,078.70.

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