Mining stocks drag FTSE down

Mining stocks dragged the FTSE 100 back below 6100 today as oil and copper prices fell and investors looked to cash in on their recent rally.

A positive start to the day’s trading saw the market set several new five-year highs to peak at 6113.4, buoyed by brighter media stocks.

However, profit taking at the miners after crude oil and copper declined meant the Footsie closed 8.4 points down at 6081.4.

BHP Billiton, the world’s largest mining company, slid 4% or 41p to 1,148.5p. Rio Tinto tumbled 3.7% or 118p to 3075p, and Xstrata was down 3% or 70p to 1996.

BP and Royal Dutch Shell lost hold of early gains down 3.5p to 700.5p and 5p to 1999p respectively.

However, Cairn Energy, which specialises in exploration and production in India, gained 2% or 54p to 2321p as investors at the company’s annual meeting celebrated an “exceptional” performance from Cairn in 2005.

Media companies added a significant slice of the top flight’s early drive forward, after Daily Mail & General Trust continued the recent acquisition spree in the sector with a deal worth £73m (€105.5m) for a US-based real-time provider of energy generation and transmission information.

Directories group Yell moved to the top of the board, to add 17.5p to close at 541.5p. Daily Mail & General Trust rose 16p to 672.5p, Reuters lifted 5.25p to 390.25p and ITV added 1p to 114.5p.

Tentative bid talk involving Capital Radio owner Gcap Media – up 19.25p to 243p – added to the positive sentiment in the sector, while the mood was also helped by the performance of another second tier company, music company EMI.

The recording and publishing group jumped by more than 8% or 21.25p to 277.25p after forecasting a 12% rise in annual profits amid further signs that it was starting to realise benefits from the digital era.

Among other movers, ICI rose 2% – 8.5p to 371.25p – after results from a rival company in the chemicals sector raised expectations from ICI, which is also seen as being in line to receive a takeover approach.

Meanwhile, stock in new venture Chariot, lifted 13% or 23.5p to 208.5p after it announced it is to launch a UK lottery as a “fairer” alternative to the National Lottery.

Called “Monday – the Charities Lottery”, the new game is said to give players better odds of winning smaller cash prizes than the National Lottery.

JJB Sports moved in the opposite direction, down 5p to 176.5p, after a price war on the high street caused profits to fall sharply. JJB also appeared to rule out an imminent pick-up for the retail sector, pulling Woolworths 0.75p lower at 34.25p.

Low-cost airline EasyJet was another notable faller, down 10p to 310.25p, as rival British Airways revealed cheaper fares in the short-haul sector.

The day’s biggest blue-chip risers were Yell up 17.5p to 541.5p, Kelda ahead 21.5p to 780p, Daily Mail & General Trust up 16p to 672.5p and Cairn Energy lifted 54p to 2321p.

The heaviest fallers were Rio Tinto off 118p to 3075p, BHP Billiton down 41p to 1148.5p, Xstrata off 70p to 1996 and Corus down 3p to 86p.