FTSE 100 weighed down by miners after Chinese inflation data


(MENAFN- ProactiveInvestors) Not for the first time resource stocks were dragging Footsie down with sellers emerging after more disappointing data from China.

Chinese inflation in January was not as high as expected which suggests demand in the Chinese economy is not as vibrant as assumed.

Miners such as Antofagasta Rio Tinto and Fresnillo were among the hardest hit blue-chip stocks but it was Royal Mail (LON:RMG) not noted for its reliance on the Chinese economy that was the worst performer after heavyweight broker JP Morgan cut its rating and price target on the company.

It slashed the rating to 'neutral' from 'overweight' predicting reduced mail volume and lower pricing to hit earnings next year.

Royal Mail’s shares shed 4.7% at 433p.

Oil stocks were also friendless as the price of West Texas light sweet crude tumbled 0.8%.

Tullow Oil (LON:TLW) was the weakest of the big oil stocks retreating 10.5p to 411.5p after selling off a 40% stake in an exploration venture in shallow waters offshore Mauretania to Sterling Energy (LON:SEY) which was unchanged on the news.

The FTSE 100 was down 13 at 6824 and the fall would have been larger but for support for retailers.

High Street bellwether Marks & Spencer (LON:MKS) was wanted after an upgrade from Royal Bank of Canada.

Marks was up 3.1% to 490p while sector peers Morrisons Tesco and Dixons Carphone were also in the blue.

Home builder Bellway (LON:BWY) was another riser - up 2.3% to 1871p - as it posted a trading update and it dragged Taylor Wimpey up with it.

The firm said that while the pricing environment remained favourable the rate of house price growth had moderated.

That said the average sale price of a Bellway home increased by 3% to £219000 in the six months to 31 January compared to 13% a year ago and the company sold 3754 homes over the period - a 15.7% rise.

Among the small caps shares in flight simulator specialist Simigon (LON:SIM) went 16.7% higher to 24.5p as it reported a significant increase in profits in the year just gone.

Entu (LON:ENTU) the home improvements group that sells energy efficient products unveiled a 48% rise in annual profits as investors were told they would receive a dividend a full year ahead of plan.

That was enough to inspire market makers to push the share price up 6.6% to 122p.

On the downside Northern Petroleum (LON:NOP) lost around a fifth of its stock market value after a disappointing drilling result.

The company revealed that the latest well in its drilling programme at the Keg River project in Canada found and produced oil but contained too much water to be economic given current oil prices.


ProactiveInvestors - UK

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