Mining stock falls push FTSE into red
Heavy falls by mining stocks plunged the London market into the red today, despite massive gains from airport operator BAA on the back of takeover interest.
Miners dominated the FTSE 100 Index fallers board after a weakening of metal prices around the world and amid heavy profit taking.
But news that a Spanish infrastructure company was planning a possible takeover of BAA cushioned the blow as the Footsie recovered some of its early losses to stand 24.8 points lower at 5722 by mid-morning.
BAA added more than £1bn (€1.5bn) to its market value after Grupo Ferrovial, which has a 50% stake in Bristol airport and complete ownership of Belfast City airport, declared its interest.
The Spaniards said no approach had yet been made, but it was enough to send BAA shares up 18% or 116p to 771p.
The gains helped the FTSE 100 Index make a partial recovery from an earlier fall of more than 60 points to below 5700.
Kazakh explorer Kazakhmys was the worst hit stock, down 4% or 32p to 820p, while Anglo American shed 34p to 2053p.
They were joined by rivals Antofagasta – off 63p to 2016p – Rio Tinto – down 82p to 2773p – BHP Billiton – down 26.5p to 987p – and Xstrata – 38p weaker at 1567p.
Simon Denham, of Capital Spreads, said gold had suffered its worst day for over three years, while copper “came in for a mauling”.
“In commodities, the warning that markets were looking a bit tired came in with a vengeance,” he said.
Oil giants also weighed heavily on the markets following a fall of almost $2 a barrel. Royal Dutch Shell slipped 30p to 1883p while BP fell 3p to 645.5p and BG Group weakened 8.5p to 617p.
