Mining sector losses pull FTSE down

Centrica shares raced ahead today as investors backed its £2.3bn (€2.55bn) deal for a 20% stake in future nuclear generation projects in the UK.

The agreement with France’s EDF was secured at better terms than the equivalent price for British Energy when it was sold last year.

Centrica shares gained 6% or 14.5p to 242p, but the FTSE 100 Index was down 44.3 points at 4417.8 by mid-morning after a poor session for the mining sector saw Lonmin fall 200p to 1422p and Kazakhmys decline 80p to 687.5p.

Investors were spooked by Lonmin’s plans for a rights issue and its comments about uncertain demand in the platinum metals market. Johnson Matthey, which is a refiner of platinum, fell 52p to 1222p.

Banking stocks also suffered a correction after a strong run in recent sessions. First quarter trading figures from HSBC – down 18.5p to 559p - provided the trigger, even though there were no nasty surprises in the report.

Royal Bank of Scotland was down 2.1p at 45.3p, while Lloyds Banking Group shed 3.7p at 97p and Barclays retreated 3.5p to 277.5p.

One of the other big upward moves of the session came from security group G4S, which beat investor expectations with a 48% rise in operating profits for the first quarter. Shares were up by 7% or 14.9p to 214.5p.

In the FTSE 250 Index, shares in funeral services group Dignity rose 7% after it said the acquisition of five crematoria during April contributed to a strong trading performance so far this year. Shares were up 38p to 576p.

Elsewhere, builders’ merchant Travis Perkins saw its shares rise 2% at one stage after announcing plans to raise £300m (€333m) from a rights issue. Shares were later unchanged at 753.5p.