Market Report: China slowdown spells dips for mining sector
Tuesday 07 January 2014
China continues to show off its influence over the London market as some of the big miners took a heavy dent on the first day when most trading desks were full after the festive celebrations.
A slowdown Chinese manufacturing data meant five of the top 10 fallers came from the mining sector.
Silver producer Fresnillo led the fallers, down 36p to 735.5p, followed by copper miner Antofagasta, down 34p to 787p. Randgold Resources fell 138p to 3,820p, Rio Tinto 104p to 3,266p and Anglo American 22p to 1,275p.
J Sainsbury and Marks & Spencer both had a wobble ahead of their results later this week, as the markets can’t quite make up their minds as to whether it was a successful Christmas or not.
For J Sainsbury, down 6.2p to 369.6p, the smart money is on the supermarket reporting its first fall in like-for-like sales for 36 quarters. While M&S, down 3.7p 440.3p, has failed to convince anyone that its Christmas clothing sales will be anything other than poor, helped only by its food offering faring well.
However, despite the miners and retailers dropping, the FTSE 100 closed up 0.06 points at 6,730.7 thanks, in part, to the storming recovery by insurance giant RSA.
Investors in the company have faced a hair-raising ride over the past few months, with three profit warnings, a chief executive who fell on his sword, and £200m unaccounted for out of the company’s Irish offices.
But there appears to be a little light at the end of the tunnel after a leaked early copy of an independent report by PwC suggested the problem was an “isolated” incident and no further write-downs will be needed. Shares closed up an impressive 5.75p at 98.4p.
Elsewhere, the pub group Punch Taverns, up 1p at 12.75p, said its non-core estate of smaller pubs that make it less money are doing better than expected and will be sold off at a slower rate than previously thought. Punch wants to sell 1,106 pubs by 2019 and raise about £309m. But profits in these pubs slid by only 5 per cent, less than expected.
RM2 International, a pallet developer, manufacturer and supplier, which boasts city grandees Paul Walsh and Sir Stuart Rose on its board, rose 9p to 97p.
South Korea ferry passengers who were told to stay put 'got trapped' aboard sinking ship
Are beards attractive? Ryan Gosling says yes, but science says no. Take the A-list facial hair challenge and find out who's right
Oscar Pistorius trial: Defence witness 'unqualified' to testify
Andre Johnson: Wu-Tang Clan-discovered rapper severed his penis and jumped from LA building
Oscar Pistorius trial: Defence witness contradicts athlete's version in new blow for defence team
The food poverty scandal that shames Britain: Nearly 1m people rely on handouts to eat – and benefit reforms may be to blame
US Navy christens huge $3 billion destroyer ship USS Zumwalt that appears as a fishing boat on enemy radar
Scottish independence: It is the English who should be on their knees, begging the Scots to vote ‘No’
Nigel Farage fatigue? Half of voters ‘immune’ to Ukip’s appeal
Nigel Farage on Have I Got News For You: Ukip leader ridiculed over expenses and party 'fruitcakes'
Nigel Farage: I’m taking on the status quo, and the Establishment’s fighting back
- 1 Poveglia: 'World's most haunted island' up for sale...is anyone brave enough to buy it?
- 2 Babies cry at night to stop mothers procreating, scientists claim
- 3 24 people applied for the 'world's toughest job', here are their interviews
- 4 Andre Johnson: Wu-Tang Clan-discovered rapper severed his penis and jumped from LA building
- 5 Mrs Doubtfire 2: Robin Williams set to star in sequel to 1993 comedy
iJobs Money & Business
£150.00 per week: QA Apprenticeships: This company has been providing on site ...
£221.25 per week: QA Apprenticeships: This company is a well established Inter...
£40000 - £50000 per annum: Harrington Starr: Client Relationship Manager - SQL...
£35000 - £50000 per annum: Pro-Recruitment Group: Take your chance to join the...