Commodities including BP drag on FTSE

Market report Emma Newlands

The FTSE 100 fell into the red due to a drop in commodity stocks, including oil giant BP which took a £1.2 billion hit from its Deepwater Horizon disaster.

The blue-chip index ended the day down 13.21 points at 7,755.93, weighed down by miners including Fresnillo, Rio Tinto, and Antofagasta. The stocks were hit by a downgrade by HSBC, which cut the likes of Rio Tinto to “hold” from “buy”, as it said recent share price gains had diminished potential for further growth.

Oil giant BP was among the index’s worst performers, down 14.4p at 518.3p, after booking the further charge from the Deepwater Horizon oil spill in 2010, and saying cash payments this year related to the blast are expected to considerably exceed its previous estimate.

In currency markets, sterling lost its shine against the US dollar to trade more than 0.1 per cent lower at $1.377. Versus the euro, the pound was relatively flat at €1.124.

Sterling lost ground after the Office for National Statistics released data showing that the Consumer Prices Index eased to 3 per cent in December, down from 3.1 per cent in November.

In UK stocks, Greggs climbed 31p to 1,336p after revealing plans to ramp up shop openings following a solid 2017, while Provident Financial plunged 116p to 804p on news that its consumer arm will book full-year losses.

The biggest risers on the FTSE 100 included Johnson Matthey, up 91p at 3,300p, and J Sainsbury, up 5.3p at 256.2p. The biggest fallers included Fresnillo, down 49.5p at 1,378.5p, Rio Tinto, down 126p at 4,046.5p, and Antofagasta, down 29p at 1,009.5p. The sports retailer leapt after hiking its full-year profit outlook for the second time in four months, boosted by its popularity with millennials. The outsourcer fell on news that Prudential decided to move the administration of its UK life and pensions business to a new supplier.