Mining and media stocks make mark on FTSE

Contrasting fortunes for mining and media stocks left the FTSE 100 Index close to its opening mark today.

Xstrata delivered a boost for the metals sector after it tabled an offer for platinum firm Lonmin at a 42% premium to Tuesday night’s closing price. Even though Lonmin rejected the approach, shares rose 48% or 1106p to 3425p and pulled a host of other mining stocks higher.

This was nearly enough to keep the Footsie out of negative territory, with the blue-chip index down by 4.9 points at 5449.6 by mid-morning.

The mood was soured by half-year results and a gloomy outlook statement from commercial broadcaster ITV.

Shares in the firm were 9% lower, down 4p at 42.3p, after it announced a 28% fall in half-year profits, cut its dividend by 50% and forecast a deterioration in advertising revenues for the rest of this year.

The impact of the results statement was felt in the FTSE 250 Index, with Trinity Mirror down 13% or 17.5p at 116.75p and directories firm Yell 3.75p lower at 88p. European newspaper investment firm Mecom was down 9% or 1.75p to 20.5p but Johnston Press proved the exception after Kaupthing upgraded the beleaguered stock from sell to buy, causing shares to rise 5.25p to 59.25p.

Back in the FTSE 100 Index, Old Mutual shares fell 7% or 7.6p to 98.8p after South Africa’s largest insurer blamed volatile equity markets for increased provisions, offsetting a 3% rise in operating profits.

Standard Life was also under pressure, despite reporting a 51% rise in half-year profits and increasing its dividend payment by 7%. Shares fell 5% or 12p to 232.25p during a difficult session for the insurance sector, with Friends Provident off 4.6p at 86.9p and Aviva 16.5p lower at 515p.