Shares closed firmly today in negative territory, as Wall Street headed lower, strength was present in mining issues and robust results from Marks & Spencer offset by rampant oil prices.
At the close of play, the FTSE100 was down 50.5 points at 6,016.5 with the FTSE250 down 135.1 points at 9,743.8 and the AIM100 4.3 points lower at 6,204.
Volume was fair with a shorter working week, with 2.823 billion shares changing hands in 335,054 deals.
Mining shares were also in demand as brokers once again raised current estimates and target prices across the board following fresh commodity price gains.
Gold futures remained above $600 an ounce, while copper and zinc hit fresh highs.
Meanwhile, crude oil contracts dipped below $69 a barrel late afternoon, but remained tight on concerns that the US might launch a military strike against Iran despite US attempts to play down the report.
Today’s look at individual Stocks:
Deutsche Bank upgraded Anglo American and Xstrata to buy from hold and raised target prices across the sector, with Merrill Lynch and Citigroup also lifting forecasts.
Xstrata closed up 31p to 2,005p, BHP Billiton closed up 13.5p at 1,155.5p, Anglo American was up 20p at 2,425p, Antofagasta gained 35p at 2,364p and Rio Tinto was also up 14p to 3,129p.
BP was up today 1.5p to 695p and Shell was up 15p to 1,985p, respectively.
A portfolio stock, Tullow Oil went up 2.5p to 367.25p. Dana Petroleum was up 33p at 1,070p, also helped by a buy recommendation and raised price target of 1,350p.
Marks & Spencer gave some sparkle to the session, jumping 22p to 586p after unveiling a third consecutive quarter of underlying sales growth, confirming it is on the road to recovery under the CEO, Stuart Rose, despite the tough UK retail environment. Marks and Spencer posted Q4 sales up 6.8% on a like-for-like basis, exceeding expectations of 3.2% growth, from third quarter growth of 2.9%.
In reaction to the news, broker Seymour Pierce upgraded its stance to outperform from hold calling the update 'stunning'. Well done! M&S
Mortgage bank Alliance & Leicester was one of the weakest stocks around, down 33p at 1,122p, while Amvescap lost 15p to close at 524p and insurer Friends Provident lost 5.25p at 193.75p.
HBOS was also weaker, down 16p to 933.5p, despite an upgrade to neutral from under perform by Credit Suisse.
Scottish & Newcastle dropped 25p to 506.5p after unveiling plans to raise about £210m via a share placing to help finance its acquisition of the Fosters brand in Europe from Australia's Fosters Group.
BT Group lost 5.25p at 213p as confirmation that Carphone Warehouse (a portfolio favourite) is to enter the broadband internet market stoked up competition concerns for the UK telecom group.
Carphone Warehouse announced that, for a monthly fee of £10, subscribers to its new 'bundled' product will receive broadband internet access and unlimited national and international landline calls.
In reaction to the news, Nomura said that whilst Carphone Warehouse will likely have to manage subscribers expectations, this offer clearly ups the ante in the UK broadband market and adds to the competitive pressures on BT. Although the news was positive Carphone Warehouse weakened in afternoon trading, closing down 3.5p to 310p as investors remained cautious on the costs of the company's broadband launch.
The UK mobile retailer said plans to launch high-speed internet access will cost more than £100m in the current financial year, but will boost operating profits by between £30m-£40m the following year.
The group also reported pre-tax profits for the year to March in line with expectations of around £135m.
More about this stock in the portfolio review tomorrow.
Wilson Bowden lost 46p at 1,510p after being downgraded to neutral from buy by UBS on valuation grounds.
The broker said the stock had a strong run in the year-to-date, up 35%, and up 8% in the last quarter.
The first of two in depth reports on the portfolio shall be posted tomorrow.
The Portfolio
CSR (CSR) was down 3.32%, 40p to 1198.00p
Burren Energy (BUR) was also down 4.78%, 45.50p to 907.00p. This stock is sailing very close to the stop loss level.
Fenner (FENR) also closed down 4p at 209.00p
Victoria Oil and Gas (VOG) closed up for a change 2.74% at 206.50
