🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Weaker commodity stocks push FTSE lower at the close

Published 15/05/2015, 18:14
© Reuters. An electronic information board is seen at the London Stock Exchange in the City of London
UK100
-
BARC
-
AAL
-
SAB
-
ITV
-
HG
-
CL
-
FRES
-
FTNMX551030
-
FTNMX601010
-
GLEN
-

By Atul Prakash

LONDON (Reuters) - The FTSE slipped on Friday, with energy and mining sectors falling the most on U.S. economic growth concerns and after prices of key commodities dropped.

U.S. industrial production fell for a fifth straight month in April while a sharp drop in American consumer sentiment in early May also darkened the mood.

"The market believes that there is more to worry about given that recent U.S. data is continuing to miss expectations. Growth concerns are particularly hurting cyclical sectors such as energy and mining," said James Butterfill, global equity strategist at Coutts.

The British mining index (FTNMX1770) fell 1.2 percent, the top sectoral decliner, as prices of copper and most other industrial metals fell on a firmer dollar. Shares in Anglo American (L:AAL), Glencore (L:GLEN) and Fresnillo (L:FRES) were down 1.2 to 1.8 percent.

The oil and gas index (FTNMX0530) fell 1.1 percent after crude oil prices dropped on reports that a growing supply glut was boosting inventories worldwide.

Britain's blue-chip FTSE 100 index (FTSE) ended 0.2 percent weaker at 6,960.49 points after rising to 7,009.41 in early trading. It was down 1.2 percent over the week.

SABMiller (L:SAB), up 0.7 percent, outperformed the market after saying it would acquire British craft beer firm Meantime Brewing Company, giving the maker of big name brands such as Peroni and Grolsh exposure to the fastest-growing part of the British beer market.

"The variety of styles added to SAB's extensive local and heritage beer menu should serve it well, while its experience will help with Meantime's strategic goal of making beer attractive to a wider clientele," said Mike van Dulken, head of research at Accendo Markets.

"While acting as a predator today, SAB remains prey in terms of sector consolidation, which is keeping the shares close to all-time highs."

Among other sharp movers, ITV (L:ITV) rose 1.8 percent, with JP Morgan, Barclays (LONDON:BARC) and Bernstein all raising their target prices for shares in the British broadcaster.

© Reuters. An electronic information board is seen at the London Stock Exchange in the City of London

"We continue to see ITV as a well-managed company that executes their business plan very well," analysts at Barclays said in a note.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.