FTSE dealt hefty blow by mining stocks
The FTSE 100 Index was more than 50 points lower today after mining stocks dealt a hefty blow to the London market.
Mining firm BHP Billiton triggered the weakness by cutting its annual oil and gas production targets by around 8% due to storm damage in the Gulf of Mexico.
With heavyweights BP and Royal Dutch Shell also under pressure, the Footsie dropped 52.9 points to 5289.3 by mid-morning – leaving the top flight at its lowest level in more than a month.
The update from BHP left its shares 29.5p lower at 813p while the rest of the mining sector was also affected by a fall in copper prices.
Investors banked profits in copper miner Antofagasta, which dropped 60p to 1477p, while Anglo American weakened 64p to 1594p and Xstrata retreated 53p to 1329p.
A shiver was felt by BP and Shell, which have already reported extensive damage to their Gulf operations from Katrina and whose shares fell 10.5p and 26p to 623.5p and 1814p respectively.
Along with BG Group and Cairn Energy – down 15p and 65p at 500p and 1770p – the oil sector makes up around 20% of the Footsie.
The weakness overshadowed a rare batch of positive updates from the retail sector.
Marks & Spencer lifted 3.75p to 399p and Tesco gained half a penny to 304.5p after second-tier pair WH Smith and Body Shop International impressed investors with further signs of recovery.
WH Smith cheered 7% or 24p to 365.25p after chief executive Kate Swann reported annual profits at the top end of expectations and said the company’s revival strategy remained on track.
It was followed higher by the Body Shop after the cosmetics retailer said like-for-like sales rose 4% in its first half and operating profits mirrored the hopes of the market.
The stock gained 8.25p to 218p, while fellow retailers Matalan and Kesa also benefited – up 4.75p and 1.75p to 166.75p and 239.25p respectively.
