Miner Glencore and China lead FTSE to seven-month low – London Report
THE FTSE 100 fell yesterday to its lowest level since January, hit by anxiety over metals consumer China’s economy, with Glencore leading the mining sector lower after poorly-received results.
The blue chip index was down 122.84 points, or 1.9 per cent, at 6,403.45 points by the close – its lowest closing level since 15 January, and more than 10 per cent below a record high of 7,122.74 points hit in April.
Miner and commodities trader Glencore was the top faller, dropping 9.7 per cent to a record low after a 29 per cent fall in first-half earnings due to a slide in metal and oil prices.
Some questioned whether a decrease in the firm’s debt and cuts in capital expenditure went far enough. “I think that the cutback on the capex wasn’t big enough,” said Zeg Choudhry, managing director at Lontrad.
Anglo American, BHP Billiton and Rio Tinto fell between 4.4 and 3.7 per cent.
Leading the few blue chip gainers, British insurer Admiral jumped 3.8 per cent after posting a forecast-beating one per cent rise in first-half pre-tax profits. Pharmaceutical firm Hikma rose 2.5 per cent after maintaining guidance for full-year revenue growth.