FTSE retreats as profiteers hit resources, pharmas

London stocks were lower in early deals as miners, oilies, pharmas and multiple financials were targeted by profiteers after their recent run-ups in the wake of Donald Trump winning the US presidential election.

Soon after the open, FTSE 100 was down 17.88 points, or 0.26%, to 6810.1, while FTSE 250 was down 46.95, or 0.27%, to 17,612.5. At 8.27am, WTI crude was down 0.72% to $44.34/bbl, while Brent was down 0.52% to $45.6/bbl. Gold was down 0.89% to $1255.1/oz.

Asia-focused lender Standard Chartered (STAN) led blue chips lower with a fall of 4.54% to 629.1p, with rand-sensitive insurer Old Mutual (OML) falling 2.61% to 186.8p and investment specialist Schroders (SDR) easing 1.41% to 2862p.

Among miners it was gold-sensitive issues Fresnillo (FRES), lower 3.87% to 1515p, and Randgold (RRS), off 3.09% to 6187.5p, that were worst hit. Others — BHP Billiton (BLT), Anglo American (AAL) and Rio Tinto (RIO), among others — followed.

Hikma (HIK) guided pharmas down as it retreated 3.54% to 1634p, chased by Shire (SHP), down 2.39% to 4961.75p. Among oil majors, Shell (RDSA) lost 1.58% to 2005.75p and BP (BP.) dropped 0.94% to 444.7p. Blue-chip losers outnumbers winners 59 to 41.

Mining giant Antofagasta (ANTO) bucked the sector trend with a 2.59% gain to 733.5p. It was chased by US rates-sensitive utilities. United Utilities (UU.) added 2.34% to 885.75p, while National Grid (NG.) rose 1.97% to 962.5p and Severn Trent (SVT) added 1.88% to 2170p.

Also rising were several supermarkets, commercial property, telecos and leisure stocks, and a smattering of blue-chip outfits whose sectors were otherwise lower.

BIGGER MOVERS

Range Resources (RRL), up 26.47% to 0.43p, advises that that the QUN 158R (renamed QUN 160) development well in Trinidad successfully spudded on 9 November 2016.

SIG (SHI), down 20.57% to 91.98p, said group revenues in the period July-October increased 10.6% compared to the same period last year, having benefited from movements in foreign exchange rates (+8.9%) and acquisitions (+3.9%).

LONDON HIGHLIGHTS

Castings (CSG), down 8.9% to 392.63p, posts profit before tax of £7.08 million for the six months to the end of September – down from £9.51m a year ago. Sales totalled £57.9m – down from £65.0m last time.

Inmarsat (ISAT), up 1.04% to 730.5p, will provide its advanced new GX for Aviation in-flight broadband solution to Austrian Airlines’ continental aircraft fleet under a landmark new contract announced today.

Clinigen (CLIN), up 0.97% to 731p, said trading for the current financial year remains in line with the board’s expectations.

Bacanora Minerals (BCN), up 1.34% to 75.5p, has provided an update on activities being undertaken as part of the Company’s upcoming definitive Feasibility Study (FS).

Target Healthcare REIT Ltd (THRL), up 0.12% to 108.13p, said Ian Webster has been appointed as a non-executive Director of the Company with immediate effect.

Volex (VLX), down 0.67% to 36.38p, has booked an H1 statutory pretax loss of $5.6m, from a year-ago profit of $3.0m. Revenue was $166.1m, from $189.4m.

Afarak (AFRK), down 8% to 34.5p, reports a resilient third quarter performance in the face of a challenging quarter and says it is well-positioned to benefit from the current market upswing.

Gloo Networks (GLOO), up 0.85% to 118.5p, posts a loss after taxation of £1.6 million for the six months to the end of September, reflecting operating expenses and diligence costs incurred in the continued pursuit of its stated investment strategy.

Other stocks in the news included Stratex (STI), GoldStone (GRL) and Konami (KNM).

Story provided by StockMarketWire.com