Mining stocks weigh FTSE down
The drag of heavyweight mining stocks meant a bleak start to the week for the London market continued today.
A dip in copper prices piled the pressure on the mining sector, as investors also indulged in some pre-Christmas profits taking.
The market climbed to its highest level in almost six years on Friday, but slid back yesterday and was further behind at mid-morning today – this time by 30.7 points to 6216.7.
It was not helped by some worrying looks to Far Eastern markets, as share prices in Thailand suffered record losses following panic selling by investors.
Back in the City miners felt the pinch as Vedanta Resources fell by more than 4%, or 49p to 1174p, while Lonmin was off 48p at 3040p and Kazakhmys slipped 22p to 1147p. It was also a disappointing session for Antofagasta, weakening 8p to 518p, and Xstrata, which was down 44p to 2466p.
Banks were also pulling the market lower after Royal Bank of Scotland dipped 12p to 1983p, Barclays eased 4p to 718.5p and HSBC fell 5p to 928.5p.
Broadcaster ITV slipped three quarters of a penny – almost 1% – to 108.75p after reporting advertising revenues had slipped 12.5% at its flagship ITV1 channel. It came despite the station admitting the performance had been in-line with expectations.
On a brighter note, Centrica led the risers board off the back of a broker upgrade following yesterday’s trading statement which offered better than expected full-year profits guidance. Shares gained 7.5p to 352.75p.
And while Marks & Spencer shares continued to set new records after rising 3.5p to 717.5p, fellow retailers were not so lucky with Next down 11p at 1803p and HMV losing 1.25p to 154.5p.
Outside the top flight, investors looked to Britvic shares – up 17.75p to 280.75p – after it was reported that 11% of the drinks company’s shares had changed hands in a move fuelling takeover speculation.
