FTSE 100 shares ended down on Tuesday, led by miners and oil companies.
Oil companies weighed on the London market as energy shares were hit by a fall in oil prices ahead of the meeting of OPEC oil producers on Wednesday.
At close, the benchmark FTSE 100 index was down 27.47 points, or 0.4%, to 6,772.
The price of Brent crude slid fell 3.57% to $46.52 a barrel on worries that oil producers would fail to agree limits on output.
But while losers included Royal Dutch Shell (LON:RDSA) down 2% to 1949p and BP (LON:BP.) down 2.1% to 442.55p, the largest decliners were miners with Antofagasta (LON:ANTO) down 3.9% to 700p, Fresnillo (LON:FRES) down 3.4% to 1234p and BHP Billiton (LON:BLT) completing the trio of fallers, down 3% to 1313.5p.
Miners fell after commodity futures took in breath after recent sharp gains.
The FTSE 250 index of mid-caps closed up 0.1% to 17,532.
The FTSE AIM 100 Index ended down 0.6% to 3927 and the FTSE AIM All-Share Index down 0.4% to 818.
London’s gainers totalled 32% and losers 33%.
Late session
FTSE 100 down 41 at 6,756
Metal prices come off the boil, dragging the miners lower
BT shrugs off latest Ofcom proposal
BMR withdraws offer for Metal Tiger
BMR Group PLC (LON:BMR) retraced some of Friday’s losses after it confirmed that it would not return with a second bid for natural resources investor Metal Tiger PLC (LON:MTR).
Although Metal rejected an initial offer on Friday as it “fundamentally” undervalued the company, the board did leave the door open to a second, better offer.
BMR - which shares a chief executive with Metal Tiger in Alex Borelli - has firmly shut that door now, though, telling investors that it has formally withdrawn its indicative offer.
Shares in both companies rose on the back of the news. Metal Tiger was up 6% to 2.25p, while BMR shares were up 14% to trade at 5.55p.
1pm...London’s blue chips off the pace as resources sectors struggle
FTSE100 was 32 points lower at 6,766 with oil stocks weak ahead of the two-day OPEC meeting, while a dip in metal prices unsettled the recent mining rally.
British Telecom Group PLC (LON:BT.A) was one of the top risers as investors concluded regulator Ofcom had again let it off lightly over its Openreach arm.
True, the telecoms giant has to make its network business a separate subsidiary with its own chairman, who will be city veteran Mike McTighe BT announced today.
Dido Harding of TalkTalk, an Openreach customer and one of its fiercest critics, welcomed the Ofcom decision but she doubted it would have a major effect.
She was ‘quite sceptical’ of Ofcom’s ability to implement the plan, though TalkTalk (LON:TALK) shares rose 2.3% to 160.7p even so.
BT added 1% to 353.5p and Sky (LON:SKY), another Openreach critic, was flat at 771p.
11.30am ..FTSE 100 dragged down by mining stocks
The FTSE continued its descent as it headed towards the afternoon, with miners still dragging it lower.
The blue chip index was down 39 points shortly before lunch to 6,763.
It was an interesting day for two small-cap oilers in particular.
Nostra Terra Oil and Gas Company plc (LON:NTOG) shares soared after it was revealed to be behind the collapse of Mosman Oil And Gas Ltd’s (LON:MSMN) offer for a producing oil field in Texas.
Shares were up over 50% on the news, which saw it acquire the Pine Mills oil field from Gale Force Petroleum, which had a pre-emptive right on the asset.
On the flip side to that was Mosman, which saw its share price fall by more than a third.
Earlier this month, Mosman told investors that it had agreed a deal to acquire an 80% stake in Pine Mills from ASX-listed Cue Resources, but it’s now obviously been gazumped by its AIM peer.
10.25...Metal price drop hits miners
Mining stocks lead the retreat today, as metal prices come off the boil.
The FTSE 100 index was off 29 points at 6,770 at 10.00am, with precious metals miners Fresnillo PLC (LON:FRES) and Randgold Resources Limited (LON:RRS) down 2.9% and 2.3%, respectively.
BP PLC (LON:BP.), down 1.6%, and Royal Dutch Shell PLC (LON:RDSB), off 1.4%, fall back as hopes of a production freeze agreement at this week’s Opec meeting wax and wane.
Results from theme park and leisure attractions operator Merlin Entertainments PLC (LON:MERL) lacked a certain magic, and the shares responded accordingly, shedding 1.6% at 430p.
The group, which said back in September that London tourist attractions were seeing fewer visitors than last year, said it had been more of the same since then in the nation’s capital.
On the plus side, house builders received a boost from mortgage approvals data from the Bank of England, with approvals at a seven-month high in October.
“The October Bank of England mortgage approvals data tie in with other indications that housing market activity has improved from the lows seen around August. The RICS reported that buyer enquiries for houses rose for a second month running in October - albeit modestly - after falling for six months running through to August,” noted Dr Howard Archer, the chief European & UK economist at IHS Markit.
Baratt Developments PLC (LON:BDEV) rose 2.6%; Persimmon PLC (LON:1.9%); and Taylor Wimpey PLC (LON:TW.) 1.3%.
8.34 ...FTSE 100 drifts lower
As expected the FTSE 100 drifted lower in early trade, taking its cue from Wall Street overnight, which succumbed to a bout of profit-taking.
At 8.40am, the UK’s index of leading shares was off 22 points at 6,777.32.
The miners led the market lower, while Marks & Spencer was also in the doghouse. Is pre-Christmas trading going as well as expected? Only time will tell.
The big news of the morning was from the regulator Ofcom, which is preparing to go to the European Commission to force change at Openreach, the telephone lines business of BT (LON:BT.).
Merlin Entertainment (LON:MERL), owner of Legoland and the London Eye, told investors earlier it was trading in line with expectations.
6.45am...sluggish open predicted
UK stocks are set to drift lower at the outset, following a weak showing overnight on Wall Street.
Spread betting quotes point to the FTSE 100 opening at around 6,790, after closing at 6,799 last night.
On Wall Street, indices pulled back from record highs, with the S&P 500 off 12 points at 2,202 and the Dow Jones down 54 points at 19,098.
In Asia, markets were a bit more sanguine this morning with the Asia Dow barely changed.
In Tokyo, the Nikkei 225 was down 32 points at 18,325 and in Hong Kong the Hang Seng was 55 points in the hole at 22,776.
Focus in the UK is once again likely to on the banking sector ahead of the Bank of England's stress tests this week, and oil stocks, prior to the kick-off tomorrow of the Opec meeting.
On the corporate front, full-year results from retailer Topps Tiles PLC (LON:TPT) will give the company the opportunity to give its view of the state of the British housing market.
The market is expecting profits of £22.1mln on sales of £216mln.
Around the markets
- Oil: Brent crude -1.2% at US$47.68 a barrel
- Gold: +0.03% at US$1,194.10 an ounce
- Sterling: -0.09% at US$1.2407
- Gilts: 10 year yield is 1.245%
Headlines
- Oil price surges on hope of deal to cut production – The Times
- Record number of first-time buyers get on the ladder – The Times
- Cadbury pulls out of Fairtrade chocolate – but it’s keeping the logo – The Independent
- India’s Tata to save 1,700 UK. jobs after agreeing £100 million sale of steel plants – The Independent
- Lithium supply predicted to keep up with demand – Financial Times
- Signs of revival in North Sea as BP inks exploration deals – The Daily Telegraph
- Fears Italy may need €40 billion bail-out for its crumbling banks – The Daily Telegraph
- Theresa May to unveil plans for boardrooms at large private businesses – The Guardian
- SFO will not charge former Tesco boss over accounting scandal – The Daily Telegraph