The biggest riser in early trading was BG Group, which rose 4.5 per cent to 1,076.5p, as market speculation made the group a likely takeover target.

According to reports, the natural gas group is being circled by two potential bidders as analysts forecast a great level of consolidation in the industry.

BHP Billiton's share price rose by 1.3 per cent to 1,833p, as it continued to court Canadian fertiliser group Potash after its latest bid valuing the company at $130 (circa £84) per share.

Gold miner Randgold Resources also rose by 10.2 per cent to 5,890p.

Kazakhmys was the biggest faller, with share price droppung 2.8 per cent to 1,155p as reports suggested that copper output was likely to remain flat until 2014.

Eurasian Natural Resources slipped 2.6 per cent to 863p. The firm announced earlier this week, that volatility in commodity prices could impact on its second half performance.

Mining group Xstrata witnessed a 2.2 per cent drop in share price during early trading.