Mining stocks were the talk of the London market today as the FTSE 100 Index languished in negative territory.
News that Xstrata had drawn a line under its troubled bid for Australian mining company WMC Resources made the stock one of the highest blue-chip climbers.
However, this sent shares in a number of rival miners tumbling and contributed to the FTSE closing 16.3 points lower at 5010.9.
Xstrata ruled out increasing its 289p per share offer for WMC for a second time after rival BHP Billiton tabled a higher agreed bid.
The news sent Xstrata 21p higher to 1061p, but BHP Billiton lost 9.5p to 740p. Rival Rio Tinto was also among the heaviest Footsie fallers, down 26p to 1825p.
Trading across the Atlantic also had a negative impact, with the Dow Jones Industrial Average slightly lower by the end of the day in London.
Those doing their best to lift the mood included logistics group Exel, which was the highest FTSE climber after a positive broker note from Credit Suisse First Boston. The stock added 20p to 874.5p.
It was followed by BAE Systems, which recovered some of the ground lost yesterday following a share issue needed to part-finance a £2bn acquisition. BAE rose 5.5p to 251.25p, a gain of more than 2%.
Another riser was British Airways, which gained nearly 2%, or 4.5p, to 281p, after it said former Aer Lingus boss Willie Walsh would replace departing chief executive Rod Eddington.
Elsewhere, a number of retailers were lower after the British Retail Consortium said February like-for-like sales fell 0.3% amid tough conditions for DIY and electrical retailers in particular.
Fallers included Dixons, off 3.75p at 155.5p, and B&Q owner Kingfisher, down 2.75p at 292p.
In the FTSE 250 Index, ports and ferries group P&O was out of favour after announcing losses of £210m for last year due to the cost of a major shake-up at its ferries business.
Shares in the company headed the second-flight fallers, retreating nearly 6% or 18p to 301.5p.
French Connection shares were also under pressure – down 4%, or 11.75p, to 304.5p – following its announcement of a further deterioration in sales.
But shares in the RAC rallied to an all-time high after it said it had received an approach that could lead to a takeover offer.
The 108-year old company, which started life as the Royal Automobile Club, saw its stock move 19% higher, up 138.5p to 880.5p.
Fellow second-rank stock Aegis unveiled a 17% hike in underlying profits as it reaped rewards from expanding its media and research services. Investors in the marketing group reacted positively, pushing its shares 4% or 4p higher to 105p.
The highest FTSE risers today were Exel up 20p to 874.5p, BAE Systems adding 5.5p to 251.25p, Xstrata up 21p to 1061p and William Hill adding 10p to 579p.
The heaviest fallers were Amvescap down 9.25p to 352.75p, Dixons off 3.75p to 155.5p, Aviva down 15p to 662.5p and Corus off 1.25p to 57p.
References: EGi News 08/03/05
