MINER Xstrata was among the worst performers on Monday as its merger with Glencore looked increasingly unlikely to go ahead.
The sovereign wealth fund of Qatar continued building its stake in Xstrata and is intent on blocking the deal in its current form. Xstrata declined 31.8p to 907.5p. It was also affected by the crisis at platinum miner Lonmin, in which it has a 25 per cent stake.
Lonmin declined 5 per cent –off 29.5p to 610p – with concerns growing over the financial impact of violent strikes at its flagship operations in South Africa. Commodities trader Glencore bounced back off early losses to close 1.6p higher at 353.8p.
Other miners fell on fears that China will not be drawn into measures to stimulate its economy, dragging the FTSE 100 Index down 28.1 points to 5,824.4.
Michael Hewson, senior analyst at CMC Markets said: “With little to ignite excitement, shares have continued to trade within the confines of recent trading ranges, but with a negative bias.”
Eurasian Natural Resources was off 12.7p at 357p and Kazakhmys lost 23.5p at 716.5p. The sector gloom weighed on pumps and valves maker Weir Group, with the Scottish firm down 28p at 1,750p.
In the second tier, Argos owner Home Retail Group rallied 4 per cent to 96.3p after Deutsche Bank removed its sell rating on the stock. The broker was encouraged by the most recent trading update and said a strategic review later this year could offer some support.
Insurance firm Amlin added 2 per cent to 389.1 after returning to profit following last year’s spate of calamities. Its positive comments on the UK motor insurance market helped Admiral onto the FTSE 100 risers board, up 6p at 1,179p.
NEW YORK: Wall Street fell modestly Monday night on signs of fatigue after six consecutive weeks of gains and after the European central bank quelled speculation it was planning a bond-buying programme.
The Dow Jones industrial average was down 13.14 points, or 0.10 per cent, at 13,262.06 while the broader Standard & Poor’s 500 Index was down 2.54 points, or 0.18 per cent, at 1,415.62. The Nasdaq Composite Index was down 6.34 points, or 0.21 per cent, at 3,070.25.