Exploration groups drag FTSE back

Mining stocks led the London market into the red today as plunging copper prices weighed on investors.

Signs of slowing growth in demand in China caused the cost of copper to fall, leaving shares in mining groups at the top of the FTSE 100 Index fallers board.

This helped drag the Footsie 13.1 points lower to 4634.8, although earlier in the session it had climbed nearly 30 points higher.

A weakening in the cost of oil and record low unemployment figures failed to hold the index in positive territory.

The mood was reflected across the Atlantic, where the Dow Jones Industrial Average stood nearly 40 points lower by the end of trading in London, despite rising profits at Intel and Yahoo.

Back in London, mining stock Antofagasta was the Footsie’s biggest victim, falling more than 6% or 74p to 1066p. It was followed by rivals Xstrata, losing 41.5p to 858p, BHP Billiton, down 26.5p to 573p, Anglo American, off 52p to 1251p and Rio Tinto shedding 51p to 1452p.

Other losers included oil giants Shell and BP, which weakened after the price of crude fell back below 52 US dollars a barrel. BP was 9.5p lower at 538p and Shell was off 1.5p at 417.5p.

In contrast, the news cheered investors in British Airways, which was at the top of the Footsie risers after climbing 5% or 9.5p to 209p.

Second tier retailers were dominating the corporate news, with JJB Sports topping the FTSE 250 fallers, down nearly 19% or 45.5p to 198.5p after saying takeover talks had collapsed.

However, upmarket fashion chain Burberry moved 1%, or 6p to 370p, ahead after reporting continued strong sales.

Another clothing retailer, Peacock, lost 3% or 7.75p to 247p after saying its Bon Marche women’s discount fashion chain had performed poorly in the second quarter. It added, however, there were some signs of recovery

Troubled tour operator MyTravel was also in the red, dropping 0.3p to 5p, after announcing plans to swap £800m of unsecured debt for equity in a move that will leave shareholders with just 4% of shares.

Iceland-to-Booker retailer Big Food Group was down a penny at 91.75p after reporting weaker sales in the wake of strong competition and poor weather.

Gym operator LA Fitness saw its shares rise 5% or 9.5p to 188p after seeing membership numbers rise 21% in a year and annual pre-tax profits improve by 27% to £9.1m.

Conservatory maker Ultraframe also added 2p to 75p after saying its UK market remained “volatile and competitive” as it stuck by guidance in an August profits warning.

The biggest risers in the Footsie today were British Airways up 9.5p to 209p, Cable & Wireless adding 2.5p to 100.25p, Diageo up 18p to 738p and Scottish & Newcastle adding 8.75p to 388.75p.

The heaviest fallers were Antofagasta down 74p to 1066p, Xstrata off 41.5p to 858p, BHP Billiton down 26.5p to 573p and Anglo American off 52p to 1251p.