FTSE suffers over subdued commodities

Market report Emma Newlands

London’s premier index ended the day in the red, as commodity stocks failed to recover losses despite an oil price bounce-back.

The FTSE 100 Index closed down 8.5 points at 7,439.29, with oil majors and mining stocks facing pressure amid continued concerns about the global energy supply glut. Brent crude prices started off the day down 0.2 per cent at sevenmonth lows of just over $44 per barrel, before rebounding to $45.45 per barrel.

But commodity stocks failed to gain the same momentum, with both BP and Royal Dutch Shell’s “B” shares ending the day flat at 456.75p and 2,097.5p respectively.

In currency markets, sterling failed to build on gains in the previous session, and was down 0.1 per cent against the US dollar at $1.265, but was flat versus the euro at €1.135.

Investors were also digesting survey data from the CBI showing that manufacturers are enjoying their strongest pipeline of orders for nearly 30 years as the weak pound helps boost demand for “Made in Britain” goods.

Standard Life edged lower by 2.5p to 389.7p and Aberdeen Asset Management was down 0.3p to 293.6p despite the competition watchdog approving their £11 billion merger, deeming an in-depth investigation unnecessary.

The biggest risers on the FTSE 100 included Shire, up 166p to 4,626p, Provident Financial, up 86p to 2,447p and Glaxosmithkline ,up 39p to 1,722p.

The biggest fallers included United Utilities Group, down 39.5p to 898.5p, Morrison Supermarkets, down 6.7p to 241p and Johnson Matthey, down 64p to 2,938p. The British microchip-maker soared on the back of saying it had received interest from various parties after putting itself up for sale. The telecoms firm was down after regulator Ofcom found that it had significant market power regarding broadband in uncompetitive areas.