Antofagasta, Fresnillo, Xstrata and Anglo American fall to push down FTSE 100
Overview: the FTSE 100 sank deeper into the red close to the end of the day as losses in the mining sector continued its freefall in response to further declines in metal prices. Antofagasta (LSE: ANTO) was the biggest faller among the blue chips with a 5% decline, while silver producer Fresnillo (LSE: FRES) and another base metals focused miner Xstrata (LSE: XTA) followed with losses of over 4%.
Heating and plumbing equipment manufacturer Wolseley (LSE: WOS), mobile satellite company Inmarsat (LSE: ISAT) and investment management business Man Group (LSE: EMG) were the only non-mining stocks on the top fallers list with losses of over 3%.
Beverage group SABMiller (LSE: SAB) remained atop the leaderboard with a 3.5% gain after releasing better than expected interim results. Consumer goods manufacturer Reckitt Benckiser (LSE: RB) was the only other FTSE 100 constituent to add 1% or more, gaining 1.5% amid rumours of a possible takeover by Colgate Palmolive (NYSE: CL).
The US stock market started lower despite a report that showed no change in the number of jobless claims last week.
The FTSE 100 slid 1.2% in late afternoon after keeping its losses to a minimum in the morning, helped by a positive UK retail sales update, which showed the fastest growth rate in 17 months.
Commodities
Oil prices continued their decline in late afternoon with January Brent Crude sliding to US$77.85/barrel, while US light, sweet crude for December delivery moved down to US$77.69/barrel.
BG Group (LSE: BG), which announced positive test results from its Brazilian project today, was the top performer among the blue chips in the sector, posting a marginal gain. Supermajors BP (LSE: BP) and Shell (LSE: RDSB) shed 1.5% and 2% respectively, while fellow FTSE 100 constituents Cairn Energy (LSE: CNE) and Tullow Oil (LSE: TLW) slid 1%. Petrofac (LSE: PFC) slid 1.2%.
Midcaps did better as while Dana Petroleum (LSE: SNX) and Dragon Oil (LSE: DGO) posted marginal losses, Heritage Oil (LSE: HOIL) advanced 3.6%.
Eastern Europe focused junior Aurelian Oil & Gas (AIM: AUL) led the small caps with an 11% surge. Atlantic Canada operating oil and gas group Enegi Oil (AIM: ENEG) followed, adding nearly 7%.
Europe focused oil and gas developer Ascent Resources (AIM: AST), Kazakhstan operating Max Petroleum (LSE: MXP) and Iraq operating Irish oil company Petrel Resources (AIM: PET) moved in the opposite direction, shedding 6%, 3.5% and 2.5% respectively.
Gold and silver fall to weaken miners
Precious metals also fell today with gold and silver moving down to US$1,132/oz and US$18.26/oz respectively. Platinum retreated to US$1,429/oz.
All major mining stocks declined today. Fresnillo (LSE: FRES) was at the bottom of the pile with a 5% loss. Fellow FTSE 100 constituents gold miner Randgold Resources (LSE: RRS) and platinum producer Lonmin (LSE: LMI) followed with losses of 1.7% and 2.8% respectively.
Specialty chemicals firm Johnson Matthey (LSE: JMAT) was down 4.1%.
Yamana Gold (LSE: YAU) was down 2%.
Midcaps also fell. Aquarius Platinum (LSE: AQP) lost 4%, gold miner Petropavlovsk (LSE: POG) dropped 1%, while silver producer Hochschild Mining (LSE: HOC) declined marginally.
Some junior companies in the sector were able to post solid gains today. Lesotho operating diamond miner Kopane Diamond Developments (AIM: KDD) rallied 9%, while Africa operating gold miner GMA Resources (AIM: GMA) and Tajikistan operating gold miner Kryso Resources (AIM: KYS) added 6% and 4% respectively.
Philippines focused Metals Exploration (AIM: MML) led the fallers, slipping 16% after releasing a resource update for its Runruno project. Commodity asset development company Mercator Gold (AIM: MCR) also fell, shedding almost 9%. Turkey focused gold miner Ariana Resources (AIM: AAU) and Africa focused gold deposit developer Cluff Gold (AIM: CLF) lost more than 6%, while Uzbekistan focused gold miner Oxus Gold (AIM: OXS) was down 7%. Africa focused gold miner Pan African Resources (AIM: PAF) was down 5%.
Copper and nickel slide
Base metals also declined with copper and nickel moving down to US$3.07/lb and US$7.64/lb respectively, while zinc slipped below US$1/lb.
All base metals focused stocks in the FTSE 350 fell today.
Antofagasta (LSE: ANTO) sank to the bottom of the pile with a 5.7% loss. Kazakhmys (LSE: KAZ) and Xstrata (LSE: XTA) dropped more than 4%, as did Anglo American (LSE: AAL). Eurasian Natural Resources (LSE: ENRC), Vedanta Resources (LSE: VED) and Rio Tinto (LSE: RIO) all lost more than 3.5%.
BHP Billiton (LSE: BLT) shed 3%.
London's only listed pure iron ore producer and FTSE 250 constituent, Ferrexpo (LSE: FXPO) moved with the market, shedding 4.5%.
Tunisia focused metal miner Maghreb Minerals (AIM: MMS) was the leading faller among the juniors, slipping 10%. Philippines operating nickel miner Rusina Mining (ASX: RML; AIM: RMLA) and Zinc mining and recycling specialist ZincOX (AIM: ZOX) slid 8% and 6% respectively. Laterite nickel specialist European Nickel (AIM: ENK), Uranium and copper explorer Kalahari Minerals (AIM: KAH) and mineral sands producer Kenmare Resources (LSE: KMR) all lost more than 4%.
Indonesia operating coal miner Churchill Mining (AIM: CHL) moved down 3.5%, as did Russia focused copper and nickel producer Amur Minerals (AIM: AMC).
Nickel and iron ore exploration junior Landore Resources (AIM: LND) went against the tide, tacking on 3.5%
Banks, insurance, private equity
Lloyds (LSE: LLOY) was the only stock in the banking sector to remain in the black with a small gain. Fellow bailed out bank Royal Bank of Scotland (LSE: RBS) declined marginally. Standard Chartered (LSE: STAN) and HSBC (LSE: HSBA) declined 1% and 1.4% respectively. Barclays (LSE: BARC) was at the bottom of the pile with a 3% loss.
Insurers also switched to selling mode on Thursday. Aviva (LSE: AV) lost 2%, Prudential (LSE: PRU) was down 1.5% and Legal & General (LSE: LGEN) shed 1%. Car insurer Admiral Group (LSE: ADM) declined marginally, as did Old Mutual (LSE: OML), RSA Insurance Group (LSE: RSA) and Standard Life (LSE: SL).
Private equity firm 3i (LSE: III) retreated 2.3%.
Small cap movers
Other notable movers among the small caps included African focussed soft commodity specialist, Agriterra Limited (AIM: AGTA), which tacked on almost 8% and machine to machine (M2M0 communications specialist Telit Communications (AIM: TCM) rose 5.5%.
Large and Mid Cap News
In its half year interim statement, international brewers SABMiller PLC (LSE: SAB) said that weak currency conversions offset a ‘strong underlying performance’ . Revenue fell 6% and reported earnings were down 2%.
In an interim management statement, Premier Oil (LSE: PMO) said it expects full year production to average between 43,000 and 45,000 barrels of oil equivalent per day (boepd), which represents a substantial increase from 36,500 boepd in 2008. The company also said its development programme is on track and through its significant production increases in the future, scheduled in 2011 and 2012, it remains on track to reach production levels of 75 mboepd.
Hochschild Mining PLC (LSE: HOC) said it has agreed to acquire a further 19.2 million shares in Lake Shore Gold Corp (TSX: LSG) in a private placement, to raise its stake in the group to 36 percent from 32 percent.
Sinclair Pharma PLC (LSE: SPH) said trading in the first quarter starting July 1 has met company expectations and it is in discussions about appointing new partners for oral health product Decapinol to support its drive to seek faster access to the over-the counter-market in the US.
National Grid (LSE: NG.) announced this morning that it would hike its interim dividend by 8% to 13.65 pence after reporting solid first half results.
PV Crystalox Solar PLC (LSE: PVCS) said second half shipments are expected to be significantly above those achieved in the first half. According to today’s statement, total wafer shipment volume for 2009 is now anticipated to reach the ‘upper end’ of previous guidance, between 230-235MW.
Wm Morrison Supermarkets (‘Morrison’s’) (LSE: MRW) reported solid third quarter results this morning, buoyed by its continuing investment in delivering a better service and product to its customers while maintaining tight cost management control.
AstraZenec (LSE: AZN) announced the submission of a New Drug Application (NDA) to the US Food and Drug Administration (FDA) for the drug ticagrelo. The application is for an investigational oral antiplatelet treatment for patients with acute coronary syndrome (ACS).
BG Group (LSE: BG.) reported this morning that recent drill stem tests on the Iracema Well in the Santos Basin, offshore Brazil had confirmed the presence of high quality light oil and “record” productivity. The Iracema appraisal well is located 33 kilometres north-west of the Tupi discovery well. Iracema was drilled to a depth of 5 000 metres and completed in September 2009.
FTSE 250 constituent Aquarius Platinum (LSE: AQP) confirmed this morning that it had moved into “Phase 2” of the restarting operations at the Everest Platinum Mine in South Africa.
Small Cap News
Multi-currency payment and data processor Planet Payment (AIM: PPT, PPTR) has announced the appointment of Robert Cox as chief financial officer (CFO) and treasurer, while the company’s current CFO Seth Asofsky will now serve as senior vice president for the US region.
US focused junior Empyrean Energy (AIM: EME) has completed the planning for the fracture stimulation of each of the three horizontal wells at its Sugarloaf project onshore Texas, and the wells are now prepared for the start of the fracture operations, which is slated for December, with each stimulation expected to take 10 to 14 days.
Brainspark (AIM: BSP) said it has agreed to invest €475,536 in Mediapolis Investments SA to acquire a 10.87 percent interest in that company.
In its Q3 results statement, North Sea oil developer Xcite Energy Limited (AIM & TSX-V: XEL) said that its ‘Bentley Alliance’, will provide a watershed moment for the company as it begins the drilling of the first development well in the Bentley field in Q1 2010.
Pharmaceutical company ImmuPharma (AIM: IMM) has announced the final results from a Phase IIb trial of its drug Lupuzor aimed at treating Lupus, which displayed clinically significant improvements in patient response rate compared to placebo plus standard of care.
African focused company, Lonrho (LSE: LONR) informed the market that, the investment company Blackrock Inc (NYSE: BLK) has increased its shareholding in the company by more than 1%. Blackrock now owns or controls 48.5 million shares in the diversified AIM listed company, representing a total equity stake of 6.07%.
Gene therapy company Oxford Biomedica (AIM: OBX) has reported several positive developments, having secured further clinical and regulatory support for its anti-cancer drug TroVax and being on track to start clinical trials of ocular programmes in 2010 with Sanofi-Aventis, while cash burn remained in line with budget.
Greencore Group PLC (LSE: GNC) announced it has agreed to sell its bottled water business to Highland Spring Limited in a structured deal for up to £17.5m. Following the sale of the loss making division, the company intends to use the proceeds to reduce overall group borrowings.
