FTSE 100 Lower with Mining Stocks Taking The Lead

Paul Hutchinson
shareprices.com - Monday, June 15, 2009

The blue chip index was down 86 points, or 1.9%, at 4,355.96 points, following a fall of 19.62 points on Friday, reaching its lowest level for two weeks.

Selling was broad based, with all but three FTSE 100 constituent companies in negative territory, but the mining sector was the worst sufferer. Lonmin, the third largest primary producer of platinum in the world, was the biggest faller in the top tier after it announced that its Number One furnace had been shut down for repairs, which it initially estimated would take 30 days; its share price fell 8.3% to £13.22, but Lonmin was keen to stress that it would offer guidance on the financial implications of the shutdown as soon as the facility had been fully assessed.

Share prices fell across the mining sector, with the likes of Rio Tinto, Vedanta and Xstrata also under pressure.

The trend in the banking sector was also downwards, with Barclays and Royal Bank of Scotland, for example, both down 2.5%. Lloyds Banking Group bucked the trend, however, and was in fact the best performer, up 1.4% after the announcement over the weekend that Commonwealth Bank of Australia may bid for part of Insight Investment Management Limited. Insurance company Admiral was also up 1.1% or £10.00 in early trading.