FTSE slumps to fresh 2012 low
A slump in heavyweight mining stocks drove Britain’s benchmark share index down to its lowest level since the start of 2012 yesterday, after Greece’s commitment to bailout pledges was put into question – and dealers said further falls were likely.
The FTSE 100 index ended down 100.51 points, or 1.8 per cent, at 5,554.55 points – its lowest close since 28 December, when it ended at 5,507.40 points.
Dealers said the index had been supported by some technical buying around the 5,600 level, but added that the market appeared on a downward trend.
The mining sector, which tends to fall on fears over the economy, contributed to the FTSE’s biggest losers.
Polymetal International was the worst-performing stock, dropping by 8.7 per cent. Fresnillo fell 7.4 per cent and Randgold Resources and Vedanta closed down 6.8 and 5.6 per cent respectively.
Tullow Oil closed up 3.3 per cent after announcing an oil discovery in Kenya.
Insurer Aviva had been up as much as 5.8 per cent after its chief executive stepped down following a shareholder revolt over executive pay, but the market downturn caused it to shed its earlier gains and finish up by just 0.2 per cent.
Similarly, Europe’s biggest bank HSBC ended down 1.2 percent despite reporting higher first quarter profits.
Man Group plunged 7.1 per cent on worries that its funds were continuing to see outflows. The asset manager yesterday announced a new head of risk for its “black box” AHL fund.