At the close: FTSE 100 index suffers worst week since August on mining companies
The FTSE 100 endured its worst week since August, closing 1.03 per cent down on Friday at 6,115 points, dragged down today by G4S and Rolls-Royce.
The UK's top blue-chip index closed at its lowest point since 2 October, six weeks ago.
Rolls-Royce continued on from sharp falls yesterday, dropping 4.19 per cent to 514.5p per share, after falling nearly 20 per cent yesterday after warning profits will be at the lower end of expectations due to "sharply weaker demand". The company also warned that it might cuts its dividend.
Read more: Fitch cuts outlook for Rolls-Royce
"They can cope with one or two profits warnings, but by the time they get to the fourth, in a short period of time, it really does look grim," investment research analyst at The Share Centre Ian Forrest said.
The company's problems were compounded when Fitch today revised its outlook for embattled British engineering giant to negative.
And G4S's day didn't get any better, leading the FTSE lower this morning to close 3.9 per cent down at 227.2p per share. "G4S shares have underperformed the market, down 10 per cent this year. With no big contracts to offset likely higher costs from a rise in the national minimum wage, the downtrend in G4S looks set to continue," said Jasper Lawler, an analyst at CMC Markets.
Read more: FTSE 250 companies "restrained" in salary payouts
The poor week was largely as a result of the consistent drop in the share price of mining companies, but a number of mining companies performed well in today's trading. BHP Billiton ended 0.87 per cent up at 885.05p per share, while Anglo American rose 1.33 per cent to 456.07p per share. Rio Tinto rose 0.29 per cent to 2,244.5p per share.
However, Glencore continued its run of losses, ending 3.17 per cent down at 92.84p per share.