Overview: following impressive results from Google (NYSE: GOOG) and IBM (LSE: IBM), which were the driving force behind the market's strong run early in the day, Bank of America (NYSE: BAC) and General Electric (NYSE: GE) let investors down with disappointing quarterly reports, which were released in pre-trade, causing the market to head south. Bank of America reported a massive loss of US$1 billion for Q3, while General Electric said its profits halved, sendingthe Dow Jones industrial average and the Nasdaq composite down about 1.3%
It was of little help that the Michigan preliminary index of consumer sentiment declined to 69.4 from its early high of 73.5 in September.
The FTSE 100 started in the positive today, but plunged into the red when the Q3 and consumer confidence data came out in the US. It was further dragged down by the losses in the mining sector, which absorbed a heavy hit from declines in metal prices with Gold retreating from an all-time high of US$1,070 per ounce back below US$1,050/oz.
Oil and gas stocks were doing well as oil remained resilient throughout the day after rising to year highs overnight after an unexpected fall in gasoline stockpiles in the US.
Commodities
December Brent Crude was trading within a narrow range around US$76/barrel, while US light, sweet crude was at US$77.5/barrel.
Higher oil prices helped the oil & gas sector to gains.
BP (LSE: BP) added 1.1%, while fellow supermajor Shell (LSE: RDSB) rose 1.5%. Other FTSE 100 constituents Cairn Energy (LSE: CNE) and Tullow Oil (LSE: TLW) climbed 1.8% and 2.4% respectively, but BG Group (LSE: BG) made only marginal gains.
Petrofac (LSE: PFC) tacked on 1.8%.
Midcaps did slightly better with Dana Petroleum (LSE: DNX) climbing 3.5%, while Dragon Oil (LSE: DGO) advanced 2.5%. Heritage Oil (LSE: HOIL) added 1%.
Small caps didn’t show much movement today. US focused junior Empyrean Energy (AIM: EME) led the sector with an 8.5% climb.
Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LSE: GOO) went in a different direction, shedding 4.5%. Iraq operating Irish oil company Petrel Resources (AIM: PET) slipped 3.5%, while Ukraine focused gas producer, Regal Petroleum (AIM: RPT) moved down 3%.
Eastern Europe focused junior Aurelian Oil & Gas (AIM: AUL) and EU operating Rome-based oil junior Mediterranean Oil & Gas (AIM: MOG) also shed about 3%.
Precious metals
Gold fluctuated around US$1,050/oz all day after reaching US$1,070/oz this week. Silver, which was at US$18/oz earlier in the week, moved down to US$17.43/oz. Platinum moved down to US$1,341/oz.
Mining stocks were in decline today, responding to the declines in metal prices. Silver miner Fresnillo (LSE: FRES) was at the bottom of the pile with a 3% loss, while platinum producer Lonmin and gold miner Randgold Resources (LSE: RRS) declined 2% and 1.4% respectively.
Specialty chemicals firm Johnson Matthey (LSE: JMAT) outperformed the market with a 1.7% gain.
Yamana Gold (LSE: YAU) was down lamost 4%.
FTSE 250 gold miner Petropavlovsk (LSE: POG) lost 3.7%, while fellow midcap Aquarius Platinum (LSE: AQP) declined 1%. Silver producer Hochschild Mining (LSE: HOC) posted marginal losses.
Africa operating gold and platinum miner Goldplat (AIM: GDP) was a bright spot with a 4.5% gain, while most other juniors declined.
Argentina focused gold explorer Patagonia Gold (AIM: PGD) was among the leading fallers with a 7% slip, while Turkey focused gold miner Ariana Resources (AIM: AAU) tumbled 6.2%.
Western Australia operating Norseman Gold (AIM: NGL) and South American based explorer Mariana Resources (AIM: MARL) both lost more than 5%. Brazil focused gold miner Horizonte Minerals (AIM: HZM) and Canada based junior gold developer Rambler Metals and Mining Plc (AIM: RMM) dropped over 4%.
Commodity asset development company Mercator Gold (AIM: MCR) moved down 3.5%.
Base metals
Copper declined to US$2.80/pound, while Nickel eased to US$8.34/pound today, causing all major base metals stocks to turn negative.
Kazakhmys (LSE: KAZ) and Vedanta Resources (LSE: VED) were at the bottom of the pile with losses of over 3%. Antofagasta (LSE: ANTO) was down 2.8%.
Rio Tinto (LSE: RIO), Xstrata (LSE: XTA) and Eurasian Natural Resources (LSE: ENRC) all lost more than 2%.
Anglo American (LSE: AAL) was down 1%, while the world’s largest miner BHP Billiton (LSE: BLT) posted marginal losses.
London's only listed pure iron ore producer and FTSE 250 constituent, Ferrexpo (LSE: FXPO) managed to keep its losses to a minimum, sitting slightly below the opening level by the end of the day.
Copper and nickel explorer Regency Mines (AIM: RGM) led the small caps with an 8% gain.
Tunisia focused metal miner Maghreb Minerals (AIM: MMS) dipped 25% after releasing its full year results.
Botswana operating nickel and copper miner Discovery Metals (AIM: DME) and cement operator Prosperity Mineral Holdings (AIM: PMHL) moved with the market, shedding 3.5% and 4.5% respectively.
Banks, insurance, private equity
Bailed out bank Lloyds (LSE: LLOY) outperformed the sector, gaining 2% after selling its Halifax estate agency business for £1.
Another partly nationalised bank Royal Bank of Scotland (LSE: RBS) lost 1.3%. Standard Chartered (LSE: STAN), HSBC (LSE: HSBA) and Barclays (LSE: BARC) all shed 1.7%.
With the exception of Friends Provident (LSE: FP), which posted marginal gains, all insurers turned negative today.
Legal & General (LSE: LGEN) sank to the bottom with a 3.8% loss. Aviva (LSE: AV) also declined more than 3%.
Car insurer Admiral Group (LSE: ADM) and Standard Life (LSE: SL) lost more than 2.5%, while Prudential (LSE: PRU) shed more than 2%.
RSA Insurance Group (LSE: RSA) was down 1.6%, while Old Mutual (LSE: OML) outperformed its sector peers, holding on to the opening level.
Private equity group 3i (LSE: III) declined 1%.
Small Cap Movers
Other notables among the small caps included software manufacturer Synchronica (AIM: SYNC) with a 6.7% climb and UK based electrical components producer and supplier Cinpart (AIM: CINP), which lost 5.7%.
Large and Mid Cap News
Scottish and Southern Energy (LSE: SSE) announced it has entered into an agreement to acquire the assets of ESB Contracts Limited, for a total cash consideration of €6.4m, the acquisition is due to complete on 30 November 2009.
National Express Group PLC (LSE: NEX) confirmed that the CVC Capital Partners private equity group has decided not to make an offer for National Express. Instead the transport company will proceed with an equity based fundraising which media reports put in excess of £300m. Investors and bid speculators will have been disappointed as the National Express share price collapsed, falling over 30% to trade at £3.20 on the open.
Old Mutual plc (LSE: OML) announced that its UK subsidiary Skandia UK Holdings Limited has completed the sale of the Bankhall Group to the Friends Provident subsidiary The Sesame Group. The total gross assets disposed of are £11.8m.
BHP Billiton (LSE: BLT) has lobbed a cash takeover offer for Pilbara iron ore developer United Minerals Corporation (ASX: UMC) at $1.30 per share.
Randgold Resources Limited (LSE: RRS) announced it has completed its takeover of Moto Goldmines Ltd (TSX: MGL, AIM: MOE). Randgold and AngloGold Ashanti Ltd, through their indirectly jointly owned subsidiary 0858065 BC Ltd, now control Moto, having acquired all the outstanding Moto common shares.
The Carphone Warehouse Group PLC (LSE: CPW) said its joint venture with Richard Branson’s Virgin Group, Virgin Mobile France, is to acquire French mobile operator Tele2 Mobile for €56m.
Small Cap News
London Mining (OSX: LOND, XETRA: L9K) said that, further to its statement on October 12 that it appointed a nominated advisor and joint brokers ahead the planned listing on the Alternative Investment Market, the listing is expected to take place in November 2009.
Edison Investment Research is upbeat on alternative energy company AFC Energy’s (AIM: AFC) prospects, envisioning an lucrative global market for the company and a significant revenue stream in the next few years, as it has already proven its low cost technology as a viable fuel cell system with its first major customer AkzoNobel.
China and Mongolia focused miner Lotus Resources (PLUS: LOTP) has successfully conducted a placing to raise £100,000 to develop identified fluorspar opportunities in Mongolia.
Tantalum concentrate supplier with assets in Mozambique Noventa (AIM: NVTA) has raised a further £1.6 million through an additional placing of 40.5 million shares at 4 pence. This is in addition to the £2.1 million raised earlier in the week through the placing and open offer of 53 million shares.
Pan African Resources PLC (AIM: PAF; JSE: PAN) said chief executive Jan Nelson increased his holding in the company to 122,442 shares, or 0.01 percent of the capital, through purchasing 75,134 shares at a price of 95 South African cents each.
Phaunos Timber Fund Limited (AIM: PTF) issued its quarterly Interim Management Statement, reporting that it was continuing to implement its investment programs, and has built the necessary in-country infrastructure. As at 30th September 2009 it has invested $221.2m toward the total portfolio commitments of $680.1m.
African focused nickel and gold exploration and development junior Nyota Minerals (ASX, AIM: NYO) has appointed Martyn John Churchouse as execurive director. He previously served as chief executive of African focused mining investment company Carlton Resources PLC (AIM: CLN) and still remains an executive director there.
Tunisia focused metal miner Maghreb Minerals (AIM: MMS) released its full year results today, reporting lower expenses and losses, while achieving exploration goals for the year and making progress in finding partners for its lead and zinc projects.