Commodities boom weighs on London’s top indexes

London’s top indexes plummeted yesterday as investors ditch assets with exposure to the economic fallout of the Russia-Ukraine conflict and pour into commodities as prices continue to surge.

The capital’s premier FTSE 100 index plummeted 2.57 per cent to 7,238.85 points, while the domestically-focused FTSE 250, which is more aligned with the health of the UK economy, lost 3.35 per cent to drop to 20,079.70 points.

A ramping up in Russia’s assault on Ukraine whacked market sentiment in the City yesterday, leading investors to dump stocks and buy commodities to get in on the price surge.

Oil prices continued to advance, with Brent Crude hitting $116 at one yesterday – its highest price since 2008.

Russian gold miner Polymetal International continued its descent, dropping over 40 per cent during. It is set to leave the FTSE 100 due to the sustained slide in its share price since the outbreak of the conflict.

FTSE 100-listed broadcaster ITV was the second worst performing share on the index, plunging nearly 30 per cent as traders dumped the stock due to concerns over the long term prospects of terrestrial television to generate income amid as the streaming boom gathers momentum.

Airlines were among the worst performers on the FTSE 250 driven by pessimism over the disruption to European air travel caused by the conflict in the East.

Short haul carrier Wizz Air was among the worst performers on the index, losing 8.53 per cent. EasyJet fell around seven per cent.

The pound dropped against the dollar to buy $1.3332.