Market report: Surge in American fracking pumps up shares in Weir

A surprisingly strong update from Weir Group powered the oil pump maker towards the top of the mid-cap index.

Weir, which makes pumps and valves for the oil industry, has benefited from a surge in fracking activity in the US.

This resulted in higher sales and a modest increase in prices, and helped the company to boost operating margins in the first half of the year.

The company, which has suffered since crude oil prices collapsed in 2014, said annual revenues and profits for the oil division are now expected to be above analyst expectations.

Numis upgraded its recommendation from Hold to Add, and said the statement was “significantly more upbeat” than the one it issued last week. Weir shares leapt 164p, or 9%, to 1988p.

Commodities were to thank for the general market rising, with the FTSE 100 up 32.59 points to 7410.98, as China revealed stronger-than-expected GDP growth of 6.9% in the second quarter.

That puts the world’s largest consumer of industrial metals on track for its first year-on-year acceleration since 2010.

The news lifted the mining sector. Anglo American floated 27.5p, or 2.5%, higher to 1144.5p and BHP Billiton rose 6.65p, or 2.1%, to 322.75p.

Drug-maker AstraZeneca recovered 98.16p, or 2%, to 5086p as reports suggested chief executive Pascal Soriot might be staying put, after rumours he was heading to Israel rival Teva.

Struggling outsourcer Mitie was 11.09p better off at 289.9p after Investec’s change of heart. It upgraded from Sell to Buy, feeling more upbeat about a turnaround under new boss Phil Bentley.

On AIM, punters’ favourite EVR Holdings climbed 0.3p, or 4%, to 8.42p after signing up Sony Music, whose artists include George Ezra, to create new content together.

The company, whose MelodyVR app will allow users to view gigs in virtual reality, already has tie-ups with Warner Music and Universal Music.

Hornby, off 3p at 30p, ran out of steam after asset manager Phoenix got hold of 71.5% of the model train firm’s shares after it was forced to put up an offer to buy the whole of the company, which will remain on AIM.