FTSE suffers 42-point loss
Losses by a string of miners sent the FTSE 100 Index sharply into reverse today.
Gloom in the sector left the likes of Antofagasta and Rio Tinto among the session’s heaviest fallers, losing ground racked up in a recent rally.
With high street giant Marks & Spencer also weighing on the mood despite issuing a strong Christmas trading update, the Footsie lost 42.7 points to stand at 5688.8.
The retreat from four-and-a-half year highs reflected trading elsewhere in the world, including in New York where the Dow Jones Industrial Average lost around 30 points by the end of the day in London.
Miner Antofagasta was the heaviest faller as downbeat news from US copper firm Phelps Dodge rubbed off on the sector. The stock lost 5% of its value or 99p to 1804p. It was joined on the blue-chip losers board by Xstrata, off 53p to 1423p, and Anglo American down 64p to 1949p.
Rio Tinto was also in the red, off 66p to 2634p as one analyst noted uncertainty over the impact of Cyclone Clare in Australia.
Banking stocks suffered losses today, with HBOS one of the hardest-hit after announcing plans to launch a high street chain in Ireland. HBOS weakened 15.5p to 960p, while Barclays shed 9p to stand at 619p.
Speciality chemicals firm Johnson Matthey was also in the doldrums after reports that one of its investors was selling 5.5 million shares, sending its shares down 52p to 1384p.
Meanwhile, news of its best Christmas for three years was not enough to add further momentum to M&S shares.
M&S fell 9.5p to 492.5p as analysts questioned how much further the stock could rise, especially after chief executive Stuart Rose flagged rising costs and his belief that it was too soon to say the high street had turned a corner.
In contrast, P&O was the highest climber – up 12p to 469p – before later confirming it had received an approach worth 470p a share from PSA International. DP World has already tabled an offer worth 443p a share.
Back in the retail sector, other stocks fared better after surprise figures from the British Retail Consortium revealed the best Christmas season in four years. Next cheered 31p to 1704p and Boots lifted 7.5p to 630p.
But there were contrasting fortunes for operators of high street stores outside the top flight where Alexon weakened 3.25p to 225p after sales fell and it was left with an unexpectedly large amount of unsold stock.
However, computer games specialist Game Group surged 3.5p to 82p after an improved supply of Sony PSP consoles enabled it to outstrip sales expectations and raise profits forecasts to at least £8 million.
London Stock Exchange lost 9p to 615p after further hostile takeover interest from Australian bank Macquarie.
The highest Footsie risers today were P&O up 12p to 469p, Alliance UniChem rising 16p to 816p, Next up 31p to 1704p and United Utilities rising 10.5p to 661.5p.
The heaviest fallers were Antofagasta losing 99p to 1804p, Johnson Matthey down 52p to 1384p, Xstrata off 53p to 1423p and Anglo American losing 64p to 1949p.
