Mining stocks today dragged the London market deep into the red after a weakening of metal prices around the world.
The sector was down more than 4% to send the FTSE 100 Index tumbling 54.5 points to 5692.4 in the first hour of trading.
The worst hit was Kazakh copper mine Kazakhmys which lost 7% of its value – down 59p to 793p – following a strong run since floating in London last year.
It was followed down by BHP Billiton and Antofagasta, who both slipped 5% or 47.5p and 98p to 966p and 1980p respectively.
Anglo American – off 89p to 1998p – Rio Tinto – down 122p to 2732p and Xstrata – 60p lower at 1545p – all fell 4% as investors looked to take profits after a strong run for the sector.
Simon Denham, of Capital Spreads, said: “In commodities the warning that markets were looking a bit tired came in with a vengeance.”
He said gold had suffered its worst day for over three years, while copper “came in for a mauling”.
Oil giants also weighed heavily on the markets following a fall in the price of crude. Royal Dutch Shell slipped 38p to 1875p while BP fell 9.5p to 638p.
References: EGi News 08/02/06
