Weak metal prices drag FTSE miners into the red

MINING stocks were a drag on the London stock market as weaker metal prices sent producers into the red.

While the FTSE 100 index hit another high and beat Monday’s record close, Anglo American fell 2.3pc, or 49p, to 2111p, Antofagasta dropped 2.1pc, or 46p, to 2155p, Rio Tinto lost 1.3pc, or 69p, to 5317p and Glencore shed 1.4pc, or 6.4p, to 468.5p.

The losses at the blue- chip heavyweights were driven by weaker tin, nickel and copper prices. And the value of gold fell for a second day to around $2,300 an ounce.

The slump weighed on Londonlisted gold producers. Fresnillo descended 1.5pc, or 8.5p, to 578.5p, Endeavour Mining slid 2.3pc, or 40p, to 1680p, Hochschild Mining lost 1.1pc, or 1.6p, to 151.4p and Centamin slipped 1.4pc, or 1.7p, to 124.3p. Ole

Hansen, head of commodity strategy at Saxo Bank, said gold’s stellar rally since the mid-February low is under pressure as the yellow metal suffers a ‘long overdue and relatively aggressive, but healthy correction’.

But heading in the other direction was Ukrainian miner Ferrexpo. The London-listed group reported its best quarterly performance since Russia’s invasion more than two years ago.

The company made more than 2m tons of iron ore pellets and concentrate as production tripled in the first quarter to the end of March compared to the previous three months. Ferrexpo resumed exporting from Ukrainian Black Sea ports, leading to larger volumes sent to Europe, Middle East, North America and Asia. Shares soared 8.3pc, or 4p, to 52.2p.

Having closed at a record 8023.87 on Monday, the FTSE 100 rose to an intra-day high of 8076.52 yesterday before backing off, although still gaining 0.3pc, or 20.94 points, to a record 8044.81.

The FTSE 250 gained 1pc, or 200.33 points, to 19799.72.

Jupiter F und Management endured a tricky session after the money manager reported £1.6bn of net outflows in the first quarter. The company’s managed assets rose to £52.6bn – up from £52.2bn – due to positive investment returns. Shares sank 6.4pc, or 5.2p, to 75.8p.

The impact of the Hollywood strikes in the US last year, global economic pressures and customers failing to buy stock took its toll on Videndum. The company, which provides LED lights and smartphone accessories for broadcasters, film studios and independent content creators, swung to a loss of £79.7m last year.

Videndum said trading in the first quarter of 2024 was weaker than expected and warned timing of recovery for the cinema and TV scripted market is ‘uncertain’. Shares sank 2.1pc, or 6p, to 278p.

Bargain hunters made a move on the National Express owner Mobico Group a day after it posted another hefty full-year loss. Shares, down 9.8pc on Monday, rose 3.1pc, or 1.65p, to 55.8p.

British Airways owner IAG rose 0.4pc, or 0.75p, to 175.95p after Deutsche Bank Research raised its rating as corporate travel continues to recover after Covid.