FTSE back below 6100
The FTSE 100 Index sank back below the 6100 mark today as weaker financial stocks offset a boost to the mining sector from record copper prices.
Xstrata was the chief beneficiary of the price of copper moving within a whisker of 7,000 US dollars a tonne, while precious metals such as gold were also more expensive today than they were at the end of last week.
Weakness among banks was added to by late falls by oil stocks, and with each sector accounting for 20% of the Footsie it slipped 34 points to 6098.7.
Xstrata rose 2% or 41p to 2128p on the back of the high copper prices, which have been driven by strong demand and the potential for supply disruptions in key producing nations such as Chile.
Anglo-American was also in positive territory for much of the day before sliding later on to stand just a penny higher at 2461p.
And while BG Group and Cairn Energy ticked higher – up 2.5p to 782.5p and 20p to 2419p respectively – larger oil rival BP lost half a penny to 711.5p and Royal Dutch Shell was off 1p to 2042p.
Telecoms giant BT was the day’s biggest riser as it lifted 4.5p to 217.75p or 2% after calming fears about the strength of its pensions fund.
It told investors that an actuary had estimated that three-quarters of the fund’s £37 billion liabilities could be guaranteed by the Government under a promise given at the time of its privatisation.
But high street banks were prominent among the fallers as investors took profits, with Halifax and Bank of Scotland owner HBOS down 16p to 952p and Alliance & Leicester losing 26p to 1128p. Insurance group Prudential topped the fallers board, down 19.5p to 637.5p or 3%.
Elsewhere, record label EMI lifted 6% or 15.75p to 294p on a weekend report that on-off talks were about to restart on a merger with US rival Warner Music.
HMV gained 4% or 6.75p to 178p after Tim Waterstone went public with a £280 million proposal to buy back the Waterstone’s book chain that he founded in 1982. His indicative offer – first tabled in February – is conditional on HMV dropping its interest in Ottakar’s.
Shares in Mr Kipling owner RHM were up 2% or 5.5p to 280.5p after it said action to reverse the decline in demand for its cakes had resulted in a much stronger performance in the second half of the financial year. Branston Pickle maker Premier Foods followed suit, lifting 3% to 287p.
And iPod chipmaker Wolfson Microelectronics surged 12% or 51p to 479p after it said strong demand for music players and other portable digital products helped pre-tax profits to treble in the first quarter.
The day’s biggest blue chip risers were BT up 4.5p to 217.75p, Centrica up 6.25p to 304.25p, Xstrata 41p stronger at 2128p and Daily Mail & General Trust up 8p to 683p.
The heaviest fallers were Prudential off 19.5p to 637.5p, Old Mutual down 5.25p to 191p, Alliance & Leicester 26p weaker at 1128p and Man Group down 55p to 2585p.
