London Market Report London open: UK stocks fall for fifth day, but miners advance There was no let-up in the selling pressure on Monday as the UK stock market resumed its sell-off despite a strong performance by the mining sector. After falling 2.7% last week, the FTSE 100 was down a further 0.4% at 6,314 in early trading, falling for the fifth session in a row. If the index ends the day at this mark, it would represent the lowest close since early-July 2013. Mining stocks were being helped higher in early deals by some better-than-expected economic data from China, but concerns about the wider global economy were continuing to hit investors appetite for risk. Just over a month ago expectations that the FTSE could break above the 7,000 level were the norm, with the index trading less than 100 points away, said analyst Alastair McCaig from IG. The subsequent economic data out of Germany and dismantling of confidence has not only slaughtered European markets but dragged the UK down too, he said. On a positive note, Chinese exports increased by a larger-than-predicted 15.3% year-on-year in September, compared with 9.4% annual growth the month before. Imports, meanwhile, jumped unexpectedly by 7%, reversing the previous 2.4% drop. Miners on the up Mining stocks were the standout risers in London after the upbeat data from China. Rio Tinto was among the best performers after Barrons said at the weekend that the stock looks attractive even if a potential merger with Glencore doesnt emerge. Barrons said that the stock could rise 20% over the next 12 months and that M&A interest, however tenuous, is just another reason to own it. Other miners such as Randgold Resources, Anglo American, Fresnillo and BHP BIlliton were also on the rise, along with FTSE 250 groups Ferrexpo, Hochschild Mining, Polymetal and Lonmin. However, Aquarius Platinum dropped into the red after announcing that an employee died in an accident at its Kroondal mine in South Africa. The company said that it had to suspend operations at the Kwezi shaft pending a technical review. Airlines IAG and Easyjet were making modest gains early on as the stocks attempted to recover after fears about the ebola virus hammered stocks in the travel and leisure industry over recent weeks. In contrast, TUI Travel, Intercontinental Hotels and Thomas Cook were extending losses.
Posted on: Mon, 13 Oct 2014 09:02:18 +0000
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