MARKET REPORT: FTSE weighed down by miserable mining stocks

Mining stocks weighed on the FTSE 100 as fears of a worldwide financial slowdown despatched commodity costs tumbling.

Mexican treasured metals miner Fresnillo slumped 8.9 per cent, or 68.8p, to 704.4p, Endeavour Mining fell 7 per cent, or 136p, to 1801p, Glencore dropped 4.4 per cent, or 21p, to 455p, Anglo American lost 4.6 per cent, or 155p, to 3242.5p, Antofagasta slipped 4.5 per cent, or 62.5p, to 1340p, BHP eased 2.9 per cent, or 76p, to 2535p and Rio Tinto shed 2.9 per cent, or 154p, to 5203p.

The sector was not helped by analysts at Deutsche Bank, who lower their goal worth for Anglo, BHP and Glencore whereas downgrading Rio to ‘hold’ from ‘buy’.

Miners' misery: Fresnillo slumped 8.9%, Endeavour Mining fell 7%, Glencore dropped 4.4%, Anglo American lost 4.6%, Antofagasta slipped 4.5%, BHP eased 2.9% and Rio Tinto shed 2.9%

Miners’ distress: Fresnillo slumped 8.9%, Endeavour Mining fell 7%, Glencore dropped 4.4%, Anglo American lost 4.6%, Antofagasta slipped 4.5%, BHP eased 2.9% and Rio Tinto shed 2.9%

Investors have been involved that spluttering progress in China, as its economic system was disrupted by Covid-19 lockdowns, in addition to rising inflation and curiosity rate hikes internationally, will slam the brakes on world demand for uncooked supplies.

The bleak temper despatched the FTSE 100 tumbling 1.6 per cent, or 114.32 factors, to 7233.34 and the FTSE 250 sank 0.9 per cent, or 166.27 factors, to 19480.88. 

Market sentiment was knocked by bleak GDP knowledge which confirmed the economic system shrank by 0.1 per cent in March as the price of residing disaster started to chunk.

The determine was worse than predicted and stoked fears of a looming recession as customers reduce on spending amid hovering power payments and tax rises.

Meanwhile, Scottish Mortgage Investment Trust, which counts companies comparable to Tesla and Amazon amongst its largest holdings, tumbled 3.8 per cent, or 30p, to 750.8p.

The fund, a well-liked alternative amongst buyers, has lost almost 45 per cent of its worth thus far this year amid rising fears momentum of the high-growth tech sector shall be unable to resist the cocktail of inflation, rising rates of interest and geopolitical worries weighing on the worldwide economic system.

The decline additionally meant Scottish Mortgage lost its standing because the UK’s largest funding belief, being overtaken by non-public fairness investor 3i Group (down 1.2 per cent, or 15.5p, to 1272.5p).

Stock Watch – Circassia

Circassia shares surged after the agency upgraded its full-year forecasts.

The company, which makes gadgets to assist with the analysis and remedy of bronchial asthma, mentioned it carried out effectively within the first 4 months of the year, with revenues in its medical business up 17pc in comparison with the identical interval in 2021.

As a outcome, Circassia mentioned yesterday that full-year earnings can be ‘materially ahead’ of expectations.

The shares jumped 9.6 per cent, or 3.2p, to 36.4p.

‘Once seen as a superstar vehicle for the world’s subsequent huge issues on this planet of business, Scottish Mortgage has lost its shine huge time,’ mentioned AJ Bell funding director Russ Mould.

Other listed funds with publicity to the tech sector and the broader US market additionally got here beneath strain. Baillie Gifford US Growth Trust was down 0.7 per cent, or 1.2p, to 162.2p and Allianz Technology Trust slumped 3.1 per cent, or 7p, to 218p. 

Another mid-cap fund, Chrysalis Investments, which has holdings in UK tech companies together with ecommerce group THG (up 3.7 per cent, or 3.95p, to 111.85p) and money switch agency Wise (up 4 per cent, or 12.9p, to 332.7p), additionally fell 9 per cent, or 12p, to 122p amid mounting investor worries concerning the sector’s progress potential.

RHI Magnesita, a provider of kit for metal foundries, jumped 5.5 per cent, or 124p, to 2366p after it flagged income within the first quarter of 2022 had been ‘materially higher’ year-on-year.

The agency highlighted ‘robust’ demand for its merchandise within the interval and famous that elevated prices because of inflation have been being handed onto prospects.

FTSE 250 landlord Grainger gained 3.1 per cent, or 8.8p, to 289.8p following a powerful set of half-year outcomes.

The group reported a 23 per cent rise in rental revenue within the six months to the tip of March, whereas pre-tax income greater than doubled to £99million.

Drinks bottler Coca-Cola HBC was one of many strongest blue-chip risers yesterday, up 5.6 per cent, or 89p, to 1687p, after it delivered income progress of 26 per cent within the first quarter of the year. 

The company was additionally contemplating ‘all options’ for its Russian business after suspending exercise within the nation following the invasion of Ukraine.

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