FTSE slips on banks, miners
April 15, 2009
London - Britain's leading share index slipped in early trade on Wednesday as renewed economic concerns hit banks and miners, but BG Group led energy stocks higher after a new oil find.
By 0723 GMT, the FTSE 100 was down 15.07 points, or 0.4 percent, at 3 973.92 after closing up 0.1 percent on Tuesday. The UK benchmark is down 10 percent this year, but is up 14.8 percent since hitting a 6-year low on March 9. Banks fell after US financial shares slid overnight on fears that Goldman Sachs' share offering could prompt others to follow suit.
Barclays, HSBC, Royal Bank of Scotland, Lloyds Banking Group and Standard Chartered were down 1.4 to 4.7 percent.
"It's a reality check. The rally we had in the last month is a bear market rally," said David Morrison, market strategist at GFT Global Markets.
"I don't think the underlining problems have been addressed in the banking and the financial sector. They're still exist. We are a long way (from) being through this."
A surprising drop in US retail sales that dented hopes the recession was abating also weighed on US stocks on Tuesday.
In Asia, Japan's Nikkei average lost 1.1 percent.
In the UK, a survey showed the sharp fall in English and Welsh house prices continued in March, though the pace of the decline was the slowest since February 2008, after fast-rising new buyer interest translated into a modest increase in sales.
Rio Tinto sank 4.6 percent after its first-quarter aluminium output fell 6 percent as the world's biggest producer attempted to better balance supply with sinking global demand from industrial sectors.
The mining sector also languished on a Chinese media report that China's annual GDP growth slipped to a record low in the first quarter. Xstrata, Vedanta Resources, Kazakhmys, BHP Billiton and Anglo American dropped 2.4 to 4.4 percent. Oil producers gained on firmer crude prices and after BG Group announced a new discovery offshore Brazil.
BG Group strengthened 2.4 percent, while BP, Royal Dutch Shell, Tullow Oil and Cairn Energy put on 0.7 to 2.2 percent.
Also on the downside, retailers were under pressure after the Times said poor weather over the Easter weekend resulted in a 5 percent drop in overall footfall. Marks & Spencer, Next, Kingfisher and Home Retail slipped between 0.2 and 1.6 percent.
Legal & General also fell after going ex-dividend. - Reuters
|
|
