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Market Wrap - Market Open

FTSE guided down by miners as metals prices taper

12 June 2017 08:38

Stocks in London opened mildly lower on the back of falls among miners, with the UK still coming to grips with its hung parliament as traders look to this week's rate calls by the Bank of England and US Federal Reserve.

In early deals the FTSE 100 was down 28.82 points, or 0.38%, to 7498.51, while the FTSE 250 was down 51.05, or 0.26%, to 19,718.9. Stock markets in continental Europe were down, too.

The Bank of England issues its rates decision on Thursday, with the US Federal Reserve out on Wednesday.

Miners were down as the prices for gold, silver and copper tapered. Fresnillo (FRES) fell 2.06% to 1689.5p, while Antofagasta (ANTO) lost 0.88% to 817.75p.

Glencore (GLEN) has proposed acquiring Rio Tinto's (RIO) 100% interest in Coal & Allied Industries Ltd for $2.55bn in cash plus a coal-price linked royalty. Glencore fell 0.59% to 293.25p, while Rio Tinto fell 1.06% to 3229.75p.

Other blue chips notably lower included Scottish Mortgage Investment Trust (SMT), down 2.63% to 407p, and Micro Focus International (MCRO), down 2.48% to 2437p.

Other sectors with stocks retreating included leisure, tobacco, pharma and financials. Smith & Nephew (SN.) fell 1.32% to 1342p, while Carnival (CCL) eased 1.23% to 4973p, BATS (BATS) shed 1.86% to 5415.5p and HSBC (HSBC) ebbed 0.77% to 690.35p.

To the upside, the roughly 28 blue-chip losers included house builders and oil majors, plus some banks and supermarkets. Taylor Wimpey (TW.) rose 0.65% to 178.65p, BP (BP.) added 0.62% to 470.7p, Standard Chartered (STAN) rose 0.88% to 787.1p and Tesco (TSCO) rose 0.69% to 182p.

BIGGER MOVERS

Great Western Mining Corp (GWMO) rose 53.85% to 0.6p as it announced a large increase in mineral resources at its M2 copper-gold prospect in Mineral County, Nevada, following a comprehensive review by WT Cohan & Associates Inc as part of a JORC compliant scoping study.

Mitie Group (MTO), up 11.63% to 275.5p, has swung to a FY pretax loss of £58.2m, from a year-ago restated profit of £91.9m. "This has been a challenging year for Mitie," said CEO Phil Bentley. The company was now embarking on a major cost-reduction programme.

Northern Bear (NTBR), up 9.73% to 62p, said its unaudited preliminary results after tax for continuing operations in FY 2017 would be ahead of prior year results and management expectations.

TomCo Energy (TOM) were up a staggering 10,400% to 10.5p, which was due to a share consolidation and sub-division.

LONDON HIGHLIGHTS

Greatland Gold (GGP), up 9.56% to 0.75p, has applied for licences covering a large cobalt exploration property in the Pilbara Region of northern Western Australia.

Stanley Gibbons (SGI), down 7.62% to 12.13p, has resolved to conduct a full strategic review to probe the options open to it, and these could include a sale of some or all of the group.

Big Sofa Technologies Group (BST), up 4.55% to 23p, has been approved as a 'global systems partner' to provide video research and technology services to one of the world's largest consumer goods corporations, headquartered in the US.

K3 Business Technology Group (KBT), down 4.53% to 147.5p, has announced an £8.5m fundraising and changes to its board. It was seeking to raise up to £7.5m through a placing at 140p per share and up to £1.0m through an open offer at the placing price.

President Energy (PPC), up 3.91% t6o 6.78p, has appointed specialist global oil and gas adviser ENVOI to support the prospective farm-outs of its Paraguay interests, and has also provided an updated management estimate of prospective resources.

Sound Energy (SOU), down 3.73% t6o 64.5p, has confirmed the start of operations to re-enter and test the Koba-1 well at its Sidi Moktar licence, onshore Morocco, and also provided a further update on the drilling of the Badile exploration well, onshore Italy.

Other stocks in the news included IronRidge Resources (IRR), Servoca (SVCA), Eckoh (ECK), Weir (WEIR), Porta Communications (PTCM), Arden Partners (ARDN), CEPS (CEPS), Osirium Technologies (OSI), NAHL (NAH) and Avocet Mining (AVM).

Story provided by StockMarketWire.com

Related Company: RIO

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