Mining stocks were a drag on the London stock market as weaker metal prices sent producers into the red.
While the FTSE 100 index hit another high and beat Monday’s record close, Anglo American fell 2.3 per cent, or 49p, to 2111p, Antofagasta dropped 2.1 per cent, or 46p, to 2155p, Rio Tinto lost 1.3 per cent, or 69p, to 5317p and Glencore shed 1.4 per cent, or 6.4p, to 468.5p.
The losses at the blue-chip heavyweights were driven by weaker tin, nickel and copper prices. And the value of gold fell for a second day to around $2,300 an ounce.
The slump weighed on London-listed gold producers.
Fresnillo descended 1.5 per cent, or 8.5p, to 578.5p, Endeavour Mining slid 2.3 per cent, or 40p, to 1680p, Hochschild Mining lost 1.1 per cent, or 1.6p, to 151.4p and Centamin slipped 1.4 per cent, or 1.7p, to 124.3p.
Metal prices: FTSE 1000 mining giants Anglo American, Antofagasta, Rio Tinto and Glencore were all hit as as weaker metal prices sent them into the red
Ole Hansen, head of commodity strategy at Saxo Bank, said gold’s stellar rally since the mid-February low is under pressure as the yellow metal suffers a ‘long overdue and relatively aggressive, but healthy correction’.
But heading in the other direction was Ukrainian miner Ferrexpo.
The London-listed group reported its best quarterly performance since Russia’s invasion more than two years ago.
The company made more than 2m tons of iron ore pellets and concentrate as production tripled in the first quarter to the end of March compared to the previous three months.
Ferrexpo resumed exporting from Ukrainian Black Sea ports, leading to larger volumes sent to Europe, Middle East, North America and Asia. Shares soared 8.3 per cent, or 4p, to 52.2p.
Stock Watch – GB Group
Shares in fraud prevention specialist GB Group soared after annual profits appeared to have beaten forecasts.
The firm said it expects profits to have risen 8 per cent to £61.2million in the year to the end of March due to cutting costs.
That would be more than the top end of the £58.8million to £61million range analysts expect.
The company provides data verification services for banks.
Shares, which peaked at 954p in January 2021, surged 16.3 per cent, or 42.2p, to 301p.
Having closed at a record 8023.87 on Monday, the FTSE 100 rose to an intra-day high of 8076.52 yesterday before backing off, although still gaining 0.3 per cent, or 20.94 points, to a record 8044.81.
The FTSE 250 gained 1 per cent, or 200.33 points, to 19799.72.
Jupiter Fund Management endured a tricky session after the money manager reported £1.6billion of net outflows in the first quarter.
The company’s managed assets rose to £52.6billion – up from £52.2billion – due to positive investment returns. Shares sank 6.4 per cent, or 5.2p, to 75.8p.
The impact of the Hollywood strikes in the US last year, global economic pressures and customers failing to buy stock took its toll on Videndum.
The company, which provides LED lights and smartphone accessories for broadcasters, film studios and independent content creators, swung to a loss of £79.7million last year.
Videndum said trading in the first quarter of 2024 was weaker than expected and warned timing of recovery for the cinema and TV scripted market is ‘uncertain’. Shares sank 2.1 per cent, or 6p, to 278p.
Bargain hunters made a move on the National Express owner Mobico Group a day after it posted another hefty full-year loss.
Shares, down 9.8 per cent on Monday, rose 3.1 per cent, or 1.65p, to 55.8p.
British Airways owner IAG rose 0.4 per cent, or 0.75p, to 175.95p after Deutsche Bank Research raised its rating as corporate travel continues to recover after Covid.
