Footsie down after turbulent session

The London market struggled for direction today as mining stocks and oil companies suffered a turbulent session.

Gains for miners Xstrata and Kazakhmys were offset by rivals such as BHP Billiton and Rio Tinto, while energy companies added further pressure as investors reacted to the price of oil falling below 70 US dollars a barrel.

And with markets elsewhere in Europe and in the United States failing to make significant gains by the close of trading in London, the FTSE 100 index slipped 24.6 points lower to 6067.1.

Record copper prices and a broker upgrade on the mining sector lifted Xstrata by 5% or 111p to 2365p and Kazakhmys by 2% or 28p to 1255p.

But other miners were in less impressive form as BHP Billiton gave up 20.5p to 1177p and Rio Tinto fell 52p to 3208p.

Energy companies also provided a drag after oil prices fell back from recent highs. BG Group stood 16.5p cheaper at 753.5p, while Royal Dutch Shell was off 25p at 1929p and BP eased 9.5p to 675p.

Jimmy Yates, trader at CMC Markets, said: “It’s been a turbulent session for the heavyweight oil and mining stocks today with downside pressures on commodity prices being offset by a strong performance by Xstrata.”

Elsewhere, Alliance & Leicester fell by more than 1% as takeover speculation seen prior to the weekend began to fade. Shares were off 17p at 1183p.

A number of other banking stocks followed A&L down despite early interest after US giant Wachovia agreed to pay 25 billion US dollars (£13.4 billion) to take over Golden West Financial Corp, sparking speculation that rivals could pursue acquisitions – possibly in the UK.

HSBC gained 13p to 979p, but Lloyds TSB was 6p lower at 530.5p, Royal Bank of Scotland was off 9p to 1828p and HBOS fell 5.5p to 961p.

Among other notable faller was BSkyB as investors got the first chance to react to news after the market closed on Friday that it had secured only one of the second batch of Premier League football rights.

Shares in the broadcaster were a penny lower at 527p as UBS cut its target price and the market reacted to the fact that the remaining two packages went to Irish pay-TV operator Setanta, a growing threat to the dominance of Sky.

Vodafone was also on the slide – off 2p to 126p – after it moved to cut its European roaming charges by 40% amid pressure from regulators. Vodafone said the average cost to its customers for calls in Europe would fall from more than 61p a minute to less than 37.7p a minute by next April.

Elsewhere, shares in lottery firm Chariot were 6% higher, up 8p to 135p, as investors welcomed news that its new game, which is pitched as a “fairer” alternative to the National Lottery, has attracted high numbers of people wanting to play.

The day’s biggest blue chip risers were Xstrata up 111p to 2365p, Sage up 6.5p to 265.25p, Kazakhmys 28p stronger at 1255p, and DSG International up 3.5p to 188.5p.

The heaviest fallers were BG off 16.5p to 753.5p, BHP Billiton down 20.5p to 1177p, British Energy down 11p to 661p and Shire 13.5p lower at 830.5p.