The FTSE100 was down 41.4 points at 6,042 with the FTSE250 down 33.2 points at 10,075.4 and the FTSE Smallcaps 7 points lower at 3,669.2.
Volume was ok with 2.84 billion shares changing hands in 341,311 deals.
Today’s look at individual Stocks:
Strength in the mining sector continued yet again to provide the main support for the markets today, with commodity prices extending their now seemingly never-ending rise.
Gold futures rose another 2% to a 26-year high of $725 an ounce, while copper spiked almost 10% higher to reach $4 a pound for the first time ever.
Xstrata was the biggest gainer of 82p to 2,480p, as analysts continued to re-rate the stock ahead of its expected bid for Toronto-based peer, Falconbridge. Morgan Stanley said the miner remains its top pick in the sector and repeated its overweight stance and 2,600p target. The Footsieblog continues to rate this stock a buy.
Kazakhmys climbed 41p to 1370p. BHP Billiton gained 10p at 1,211.5p. Rio Tinto was up 41p to 3,322p and Antofagasta climbed 28p to 2,553p.
Oil stocks were mixed today with crude prices fluctuating as yesterday's news of increased gasoline demand offset healthy US stockpiles.
The sector faired as follows, BP lost 1p to 673.5p and BG Group lost 11p at 731p. However, Shell added 12p at 1,930p.
Royal & Sun Alliance shares closed down 1.25p at 139p on outlook concerns, although the insurer turned in better-than-expected Q1 profits. This morning, Royal & Sun Alliance said pre-tax profits for the three months to March 31st came in at £207 million, up 29% on the same period last year, and ahead of the average forecast of £193 million. Merrill Lynch said the first quarter results underline that Royal & Sun Alliance is making impressive progress, although the environment is slowly becoming tougher.
Friends Provident gained 3.5p to 193.75p after being upgraded to overweight from equal-weight by Lehman Brothers on valuation grounds.
Standard Chartered climbed 5p higher at 1,455p on more vague bid rumours. State-owned Singaporean investment group Temasek has long been linked with a move for the emerging markets bank.
Morgan Stanley then proceeded to make a comment on BskyB, which also helped to drive sentiment; the stock went up 11.5p to 528.5p after Morgan Stanley upgraded the broadcaster to equal-weight from underweight. The broker said BSkyB has responded to the ADSL threat with the purchase of Easynet and has recaptured the Premier League rights, albeit at a higher cost than before.
On a negative note today Marks & Spencer shares lost 21p at 611p amid talk of a placing of 40 million shares in the retailer at a price of 618p each, reportedly undertaken by Cazenove. No immediate details are available about the likely seller of the holding but commentators highlighted the possibility that US investment group Brandes could be further reducing its stake in the high street firm.
Shares in International Power also dropped back today from an early all-time high, losing 9.5p at 298.5p, as the power generator's better than expected Q1 results gave investors an excuse to take profits. International Power said a strong performance from its European operations drove a 63% rise in first-quarter profit from operations excluding exceptional items to £217m. In reaction to this, Dresdner Kleinwort retained its sell stance on International Power arguing that although the results included an 'excellent' performance from First Hydro, it feels that US gas price driven benefits may be temporary and sees Scottish & Southern and Drax as offering better value.
ITV was another casualty (shame) closing 2.75p lower at 111.25p, following a downgrade to sell from hold by Citigroup, with a trimmed target price of 105p from 115p. The Footsieblog also rates this stock a sell.
Citigroup said its advertising growth forecasts following weak data in the market and a downbeat AGM yesterday from the broadcaster.
Dragon Oil shares jumped 19.5p to 202.5p following news of a contract with Lukoil Shelf for provision of the Astra jack-up drilling rig for use in the Cheleken Contract Area offshore Turkmenistan.
