21st Mar 2016 08:42
LONDON (Alliance News) - UK stocks were mixed Monday morning, with commodity-related stocks dragging the FTSE 100, continuing their losses from Friday.
The FTSE 100 was down 0.3%, or 18.55 points, at 6,171.09.
The FTSE 250 was down 0.1% at 16,878.89 and the AIM All-Share was up 0.1% at 707.15. In Europe, the CAC 40 index in Paris and the DAX 30 in Frankfurt were down 0.7% and 0.5%, respectively.
Commodity-related stocks were heavily in the red, with miners Glencore down 2.3%, Anglo American down 2.2%, Randgold Resources down 1.5% and Antofagasta down 1.7%. Meanwhile, Royal Dutch Shell 'B' shares were down 0.8% and BP down 0.7%.
Barclays removed Randgold from its 'Top Picks' listed.
Brent crude was quoted at USD40.73 a barrel after the open Monday, down from USD41.68 at the equities close Friday. Meanwhile, gold was standing at USD1,241.00 an ounce, down from USD1,253.20 on Friday.
Among blue-chips bucking the downward trend, Mondi said the European Commission issued a statement last week about unannounced inspections on several companies in the kraft paper and industrial bags sector. However, the Anglo-South African paper and packaging company said it was not affected by the inspections at any of its facilities, adding it is not in contravention of any competition laws in Europe. Mondi was up 0.3%.
Following the last quarterly review of FTSE indices, Paddy Power Betfair, Mediclininc, Wm Morrison Supermarkets and Informa started trading in the FTSE 100 on Monday, while Sports Direct International, Aberdeen Asset Management, Smiths Group and Hikma Pharmaceuticals were demoted to the FTSE 250.
Bookie Paddy Power Betfair was the only new blue-chip stock trading higher, up 0.6%. Mediclininc was down 0.4%, Informa down 0.1% and Morrisons down 0.9%.
Rising to the mid-cap index were Paysafe Group, KAZ Minerals, McCarthy & Stone and Softcat, while demoted from the FTSE 250 were Enterprise Inns, Nostrum Oil & Gas, 888 Holdings and Poundland Group.
Investors liked Synthomer's deal, announced early Monday, to acquire US-based chemicals company Hexion Performance Adhesives & Coatings, while selling a business in South Africa. Shares in the FTSE 250-listed specialty chemicals company were up 1.4%.
Synthomer will pay USD226.0 million in cash to acquire Hexion, which manufacturers a range of dispersions, additives, powder coatings and speciality monomers, with a focus on a range of industries, including the building and construction market.
Sophos was up 0.9% after Citigroup initiated the security software and hardware developer with a Buy recommendation.
Pets at Home Group was up 0.4%. The company said it has promoted Ian Kellett to be chief executive officer, with effect from April 4, following the resignation of Nick Wood. Kellett currently is CEO of Pets at Home's retail division and prior to this was the group's chief financial officer.
Meanwhile, Peter Pritchard, who is chief operating officer of the retail business, has been promoted to CEO of that division. Wood said that after over eight years working in the North West of England, he wanted to move to London. Pets at Home is based in Cheshire. Pets at Home added that trading is in line with expectations. It will issue a fourth quarter trading update on April 21.
Meanwhile, Halfords Group was down 6.7% after UBS cut the car parts and bicycle retailer to Sell from Neutral. Energy company Tullow Oil was down 4.8% after being downgraded to Underperform from Hold by Jefferies. The Swiss Bank also cut N Brown to Neutral from Buy, sending the shares in the online, catalogue and high street retailer down 3.4%.
In Asia on Monday, Japanese markets are closed for Vernal Equinox Day celebrations. In China, the Shanghai Composite closed up 2.2%, while the Hang Seng index in Hong Kong ended up 0.1%.
"In a shortened week ahead of Good Friday, there is little in the way of market-moving data on Monday," said CMC Markets analyst Jasper Lawler. "Tuesday gets busier with manufacturing and services Purchasing Managers indices for France and Germany, German business and investor confidence data and stats on UK inflation".
As for Monday, the economic calendar has eurozone current account and consumer confidence at 0900 GMT and 1500 GMT. The UK's CBI industrial trends survey is due at 1100 GMT. In the US, the Chicago Fed national activity index is at 1230 GMT.
By Daniel Ruiz; [email protected]
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Tullow OilAnglo AmericanRDSA.LRDSB.LBPSynthomerRandgold ResourcesPaddy Power BetfairHalfordsMRW.LMDC.LGlencoreSophos GroupBrown GroupInformaMondiPets at home