LONDON MARKETS: FTSE 100 Weighed By Losses For Miners, Oil Producers
October 23 2017 - 3:36AM
Dow Jones News
By Carla Mozee, MarketWatch
GKN reportedly considering splitting up in two
U.K. stocks sagged Monday, with mining shares losing ground as a
new trading week got under way, but gains for industrials companies
helped cushion the loss.
The FTSE 100 index fell 0.1% to 7,514.98, led by commodity and
financial shares. The index on Friday closed up less than 1 point
(http://www.marketwatch.com/story/ftse-100-gains-as-us-budget-vote-pushes-pound-lower-2017-10-20).
That marked a 0.2% loss last week, breaking a four-week run of
gains.
Mining shares moved lower alongside a pullback in metals prices,
including gold , copper and palladium . Shares of copper producer
Antofagasta PLC (ANTO.LN) fell 0.8%, Anglo American PLC (AAL.LN)
gave up 0.4% and BHP Billiton PLC (BLT.LN) (BHP.AU) (BHP.AU)
dropped 0.8%.
Dollar-denominated metals prices were lower as the U.S. dollar
rose against most major rivals, largely against the euro and the
Japanese yen . Euro traders were looking ahead to the European
Central Bank's policy decision due Thursday, while yen traders sold
the Japanese currency after this weekend's general election that
delivered a convincing majority to Prime Minister Shinzo Abe's
party
(http://www.marketwatch.com/story/japans-abe-wins-by-a-landslide-now-aims-to-change-constitution-2017-10-23).
Abe's win raises the prospect for continued loose monetary
policy.
Oil prices resisted strength in the dollar, but shares of oil
major BP PLC (BP.LN) (BP.LN) dropped 0.6% and Royal Dutch Shell PLC
(RDSB.LN) (RDSB.LN) was down 0.3%.
The pound traded at $1.3193, up from $1.3188 late Friday in New
York.
Corporates: GKN PLC (GKN.LN) gained 3% following a Sunday Times
report the company is considering a split of its aerospace and
automotive businesses
(https://www.thetimes.co.uk/article/gkn-which-makes-wing-tips-for-airbus-and-parts-for-mercedes-eyes-split-to-create-two-ftse-champions-x7c2t6bj0).
Spire Healthcare Group PLC shares (SPI.LN) rallied 11% on the
mid-cap FTSE 250 after Spire rejected a preliminary takeover
approach from major shareholder Mediclinic International PLC
(http://www.marketwatch.com/story/spire-rejects-mediclinics-16-bln-takeoveroffer-2017-10-23)(MDC.LN).
The offered valued Spire at about GBP1.20 billion ($1.59 billion).
Mediclinic shares fell 0.8% on the FTSE 100.
Also off the FTSE 100, Pendragon PLC shares (PDG.LN) plunged 17%
after the auto dealer issued a profit warning, citing a decline in
demand for new cars and a price correction for used cars. Pendragon
also said Chairman Mel Egglenton has stepped down with immediate
effect for personal reasons.
"It's the latest sign of retail-woe in the U.K., especially
among companies dealing with big ticket items, as the household
spending squeeze continues," said Spreadex financial analyst Connor
Campbell in a note.
CRH PLC shares picked up 1.5% after the building materials
supplier won support of its planned takeover of Ash Grove Cement
Co. (ASHG)
(END) Dow Jones Newswires
October 23, 2017 04:21 ET (08:21 GMT)
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