logo-loader

Mining stocks drag Footsie lower, while Aim also struggles

Last updated: 09:35 18 May 2016 BST, First published: 09:34 18 May 2016 BST

Mining drill

Mining stocks dragged the Footsie lower at the outset, although disappointing results from fashion firm Burberry Group PLC (LON;BRBY) have not helped either.

The FTSE 100 was down 32 points at 6,136, with the mining sector off 3.2%.

Further down the greasy pole, Aim stocks were also losing ground, with the FTSE Aim 100 index down 12 points at 3,379 and the FTSE Aim All-share 1.4 points softer at 724.7.

The biggest faller was investment company Concha PLC (LON:CHA), down 13% at 0.53p after long-term shareholder Andrew Black converted 25mln warrants into Concha shares at an exercise price of 0.35p.

Midatech Pharma Plc (LON:MTPH) found the market hard to please. The shares gave back 19p at 151p after a clinical pipeline update. Most of the news was positive, but he market picked up on a disappointing development for Midaform, an insulin strip, which failed in trials to demonstrate the release profile seen in previous studies.

This was part of its joint venture with Monosol Rx, called MidaSol Therapeutics.

Midatech said this morning it would “begin the process of evaluating strategic options for this programme”.

Logistics firm DX (Group) PLC (LON:DX) fell 11% to 20p as it revealed its plans for a new hub in the West Midlands had failed to win local government approval. The company is considering appealing against the decision.

There has been a spate of late of companies issuing shares and then, unusually, seeing a lift in the share price, and today it was the turn of diamond explorer Golden Saint Resources Ltd (LON:GSR).

The shares rose 16% to 0.0755p as it raised over half a million quid by issuing 958mln shares at 0.056p to major shareholder Millennium Vista Ltd, which now has close to 17% of the company's issued shares.

Capital Drilling Ltd (LON:CAPD) offered hopes to all holders of mining shares cowering, metaphorically, in their bunkers waiting for the slings & arrows to let up.

The rigs and mining services provider said it won a number of exploration contracts in the first quarter, indicating that the tide may have turned in the beleaguered sector.

The shares rose 9.4% to a 52-week high of 35p.

Investors also piled into Scancell Holdings Plc (LON:SCLP), the cancer vaccine specialist. The company signalled its intent to grow its presence in the US by opening new offices in San Diego.

Good old Blighty has not been overlooked, as the company said it plans to establish a new base in the Oxford area.

Dr John Chiplin, who is based in the US and is currently Scancell's non-executive chairman, will assume the role of executive chairman. Professor Lindy Durrant, currently joint chief executive officer (CEO), will become chief scientific officer, allowing her to focus fully on the innovative drug discovery that underpins Scancell's novel technology platforms. Dr Richard Goodfellow remains as CEO.

The shares climbed 4.9% to 16p.


Opening snapshot

The FTSE 100 was down by just over 40 points (0.66%) to 6,126. Starting the day slightly lower, as expected.

The biggest winner was Vodafone Group PLC (LON:VOD) at 228.80p up just under 1%.

Anglo American PLC (LON:AAL) was the biggest loser, down over 3% to 607.50p.

Energy firm SSE plc (LON:SSE) reported a 19% fall in annual profits. It said plummeting wholesale gas prices and lower household energy were to blame.

After a profits fall, Burberry said it expects the "challenging environment for the luxury sector to continue".

Japan dodged a recession and grew at an annual pace of 1.7% in the first quarter of the year pushing stocks higher. The Nikkei 225 closed slightly higher at 16,664.91.


Preview at 6.56am

London’s FTSE 100 is expected to start Wednesday slightly lower, after good economic news equalled bad news for Wall Street.

The Dow Jones slumped 180 points, 1.02%, on Tuesday amid positive economic statistics which coupled with comments from Federal Reserve officials highlighted the possibility of a June interest rate rise.

Falling 0.94% the S&P 500 closed at 2,047 while the Nasdaq dipped 1.25% to 4,715.

In Asia, equities snapped a three day positive run.

Japan’s Nikkei moved 0.23% to 16,614, while Hong Kong’s Hang Seng dropped 1.5% to 19,812, and the Shanghai Composite moved 1.4% lower to 2,802.

Australia’s ASX 200 was down 0.65% to 5,360.

In commodity markets, Brent crude continued to rise towards US$50 per barrel - with futures changing hands at around US$49.45. Gold, meanwhile, was priced at US$1,273 per ounce.

Back in London, spread betting and CFD group IG Markets sees the FTSE 100 15 points lower – calling the blue chip benchmark at 6,141 to 6,146 about an hour before Wednesday’s open.

FTSE rises ahead of Easter weekend, JD Sport gains on upbeat outlook -...

The FTSE 100 gained on the final morning of this shortened Easter trading week. Festive cheer was limited though, as Thames Water confirmed shareholders would not provide it with a £500 million rescue package, prompting speculation over the London supplier’s future. On a more positive...

12 minutes ago