London markets post mixed day as miners and oil giants tumble

The capital’s premier FTSE 100 index jumped 1.57 per cent to above 7,000 points, while the domestically-focused FTSE 250 index, which is more aligned with the health of the UK economy, climbed 2.55 per cent to 19,707.38 points

London markets were a mixed bag yesterday as tumbling energy stocks held down the City’s top index.

The capital’s premier FTSE 100 index inched down 0.06 per cent to close at 7,585.01 points, while the domestically-focused FTSE 250, which is more aligned to the health of the UK economy, jumped 0.26 per cent to finish at 22,714.98 points.

Mining stocks held the FTSE 100 lower yesterday, with the likes of Glencore, Rio Tinto and Antofagasta all dipping more than 1.20 per cent.

Oil megacaps also registered a poor day of trading despite oil prices continuing to rise. 

BP lost 1.26 per cent and both of Royal Dutch Shell’s tranche of London listed shares finished in the red. 

BP and Shell represent an enormous share of the FTSE 100, meaning movings in their share prices exert a heavy influence on the index.

Analysts said the declines may be driven by some traders cashing in their BP and Shell shares.

“We could be seeing an element of profit taking on the likes of Royal Dutch Shell and BP after a decent run of gains and a solid start to the year. Even with today’s declines BP is still up over 17 per cent year to date, and Shell is up 12 per cent,” Michael Hewson, chief market analyst at CMC Markets UK, said.

Airlines led the FTSE 250 higher yesterday driven by investor sentiment toward the sector improving after the government scrapped plan B measures this week.

Tui and easyJet both closed higher.

Insurer Hiscox was among the worst performers, dipping over four per cent.

The pound gained ground on the greenback, strengthening 0.12 per cent to buy $1.362.