While the large cap miners continue to be a substantial weight on the FTSE 100, there are still some big deals being made at the lower end of the market.
One such company is thermal coal company Ncondezi Energy (LON:NCCL) which is in the process of finalising a deal with Shanghai Electric Power.
The binding joint development agreement will see the two develop the 300 megawatt power project in Tete, Mozambique.
The deal is in accordance with China's One Belt, One Road initiative to maximise trade across countries and move its production out of the country.
Shanghai Electric Power Corporation will invest in, and build, two units of 150MW coal-fired power plants in Mozambique.
Shares in Ncondezi more than doubled to 3.5p.
Large cap miners could not replicate its success, with all falling into the red.
Alastair McCaig at IG said: “Today has seen several institutional downgrades for both BHP Billiton (LON:BLT) and Anglo American (LON:AAL) adding to the perception that the end of dividend payments is likely to be a template that more companies follow.”
Anglo dropped around 5.4%, or 17p, to 301p while BHP was 3.9% down at 704p.
Oil stocks also dropped, as the price of a barrel of Brent crude remained under US$40 at US$39.20 while West Texas Intermediate fell around 1% to US%36.38.
Oil stocks were uniformly in the red, with Shell (LON:RDSB) down 2.9%, or 45p to 1,488p while BP (LON:BP.) spilled 2% to 343p.
The FTSE 100 looks set end on a low note, having fallen every day this week. The index stood 1.3% lower, or 78 points, at 6,010 by lunch.
It wasn’t all bad, however, as housebuilders were lifted by positive results from Bellway (LON:BWY).
A 10% increase in properties sold with a 10% increase in sales value and an improving profit margin have enabled it to increase its annual dividend by 44%.
Shares in Bellway rose 4.7%, or 122p, to 2,691p, while fellow housebuilders Barratt Development (LON:BDEV) and trade merchant Taylor Wimpey (LON:TW.) were higher by association.
In broker news, Sports Direct International saw its broker, Goldman Sachs, cut its price target for the company for the second time in a week.
IG’s Mcaig said: “Mike Ashley must be feeling sorry for himself this morning.” Shares eased 1.7% or 10p to 582p.
In the small cap world, Kibo Mining (LON:KIBO) added more than 13% to 4.1p as the Tanzania-focused mineral exploration and development company issued a letter to shareholders updating on main activities and interests.
Also higher was Legendary Investments (LON:LEG), up 12.7% to 0.12p, as its subsidiary Virtualstock appointed Robert Knott, formerly National Director of NHS Procurement, as director of healthcare and public sector.
Conversely, Photonstar (LON:PSL) lost 17.39% to 2.38p as the ED lighting products company said a supply contract had been cancelled after the customer was placed into voluntary liquidation.
The big faller on the day was Mycelx Technologies (LON:MYX) down around 46% to 17.5p as it issued a profit warning blamed on the lower oil price. Revenues are now to be similar to last year’s US$13.6mln and net losses US$3.4-3.8mln.
LONDON OPEN
London’s blue-chip stocks started Friday on a low note, with the low oil price impacting stocks.
A barrel of Brent crude slipped to US$39.52 while West Texas Intermediate dropped to US$36.64.
Connor Campbell, at spread-betting firm Spreadex, said: “With Brent Crude now firmly below US$40 per barrel the European markets had little chance of opening in the green this morning.”
Oil stocks were uniformly in the red, with Shell (LON:RDSB) down 1.6% or 25p to 1,508p while Premier Oil (LON:PMO), on the FTSE250, spilled 8% or 4.5p to 52.6p.
Mining stocks were decidedly mixed, however, with a 2% rebound for copper keeping the heads of Rio Tinto (LON:RIO), Antofagasta (LON:ANTO) and Glencore (LON:GLEN) above water.
They couldn’t boost the FTSE100, however, which lost around 33 points to 6,054.
The Eurozone indices were just as limp as their UK peer this Friday morning, the DAX and CAC falling by 81 and 33 points respectively, with the former hurt by a lower than anticipated German WPI figure.
At the foot of the index was Old Mutual (LON:OML) as investors rushed for the exit following the departure of South African finance minister Nhlanhla Nene.
Nene was held in high regard in business circles but has been fired by President Jacob Zuma, for the relatively unknown David van Rooyen.
Shares in the Anglo-African financial services company dropped 6.8% to 162p, while miners including Anglo American (LON:AAL), down 2.2% to 311p, were hit by the news.
Away from the index, International Personal Finance (LON:IPF) plummeted after a statement made late last night warning it could be hit by new legislation in Slovakia.
The Slovak parliament voted to adopt "previously undiscussed" proposals to amend various pieces of consumer legislation. Shares dropped 26.5% or 85p to 237p.
In the small cap world, proximity marketing specialist Proxama (LON:PROX) signed a two-year contract with a North American bank to establish 10,000 mobile touch points across the US and Canada.
Jon Worley, the head of Proxama’s marketing division, said to his knowledge it was the first large scale network of its kind in the banking sector. Shares rocketed 16.7% to 0.5p.
Conversely, Forte Energy (LON:FTE) plummeted around 28% to 0.02p as DCarwin Capital converted £50,000 of its loan into 1.1mln shares. The remaining loan balance stands at £650,000.
Elsewhere, security firm Digital Barriers (LON:DGB) has inked a deal to buy US surveillance firm Brimtek.
The deal, worth around £29.4mln, is being funded by the issuing of 80mln shares at 34p, the company said. Shares dropped 18.6% to 41.5p.