Mining stocks drag on FTSE earnings

Weaker mining stocks following a fall in commodity prices ensured London’s FTSE 100 Index traded on the back foot today.

The top flight index stood 46.6 points lower at 5848.9, having dipped as low as 5834.9 after a poor session in Asia and a 2% drop for heavyweight miners.

The decline at mid-morning also reflected general uncertainty ahead of an important week for first quarter results in the United States. Inflation and unemployment figures in the UK are also expected to influence market sentiment over the next few days.

Miners dominated the fallers board as gold, silver and copper prices all fell on the commodity markets.

Lonmin was worst off, down nearly 4% or 113p at 3106p, followed by Kazakhmys which fell 54p to 1644p. Other losers were Anglo American and Rio Tinto, dipping 98p to 3225p and 145p to 5755p respectively.

Banking shares reversed some early losses after sentiment was initially knocked by speculation over a rights issue from Bradford & Bingley.

After falling more than 5% at one point, B&B shares led the rally and were up 0.5p at 167.75p.

In the FTSE 100 Index, Britain’s biggest mortgage lender Halifax Bank of Scotland reversed early falls and was the top gainer, up 14.5p at 521.5p. Barclays rose 1.75p to 454.75p, with Royal Bank of Scotland gaining 2.75p to 361.75p.

But Alliance & Leicester remained in the doldrums, down 11p at 478p.

Elsewhere, accounting software firm Sage led the fallers board after brokers reacted cautiously to an in-line trading update. It followed some recent downgraded earnings forecasts for the firm, and shares were off more than 4%, or 8.7p at 189.8p.

Elsewhere, kitchen equipment firm Enodis rose 12p to 243p after it said it backed a takeover offer from American firm Manitowoc.