Gains in the blue chip mining sector and a bounce back on Wall Street failed to halt losses on London’s FTSE 100 Index today.
The top tier closed 39 points lower at 6,304.6 despite a more positive session in the US as the Dow Jones Industrial Average fought back from Monday’s steep losses.
Mining stocks dominated the FTSE 100 risers board as bargain-hunters moved into the commodity sector to take advantage of the heavy losses seen in recent sessions after gold prices suffered their sharpest fall since the 1980s and oil prices also tumbled.
Precious metals specialist Fresnillo fell by 15% on Monday, but recovered some of the lost ground today with a rise of 8% or 81p to £11.61.
Eurasian Natural Resources was 8.7p higher at 246.8p and Randgold Resources lifted 127p to £46.72 after spot gold prices showed signs of steadying.
One of the biggest falls in the FTSE 100 Index came from chip designer Arm Holdings as fears of slower Asian growth led to a decline of 3% or 28.5p to 868p. The same factor also depressed insurer Prudential, which was down 9p at £10.53, while luxury goods firm Burberry was 18p cheaper at £12.66.
Agriculture and food supplies firm Carr’s Milling Industries jumped 131p to £11.90 after it said profits surged 36% in the 26 weeks to March 2, helped by strong demand for its feed products as a result of the cold weather.
The biggest FTSE 100 risers also included Xstrata up 19.7p to 986p.
Among the biggest FTSE 100 fallers were Evraz down 6p to 165.9p, Smith & Nephew 22p lower at 741.5p and Amec down 28p to £10.
Steven McKay, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, noted that Royal Bank of Scotland rose 1.25% to 283.8p, FirstGroup added 1.21% to 217.7p and Aggreko moved slightly higher with a rise of 0.11% to finish the trading session at £17.91.
Scottish fallers included Weir Group, which closed 2.47% lower at £22.14.