LONDON MARKETS: FTSE 100 Seesaws, With Miners Under Pressure After Holiday
30 August 2016 - 6:20PM
Dow Jones News
By Carla Mozee, MarketWatch
Bunzl raises dividend payment
Stocks in the U.K. wobbled Tuesday, with mining shares
struggling at the start of the holiday-shortened week.
The FTSE 100 was up less than 0.1% at 6,841.98 after opening
with a minor loss. Trading was closed Monday for the late August
bank holiday.
The index on Friday closed 0.3% higher
(http://www.marketwatch.com/story/ftse-100-slips-but-miners-find-relief-after-selloff-2016-08-26)
after Federal Reserve Chairwoman Janet Yellen indicated the U.S.
economy looks ready to withstand another interest rate
increase.
But mining shares on Monday were knocked lower. The fall came
after a rough week for the sector last week, driven by a decline
for Glencore PLC (GLEN.LN) posted a $369 million half-year net loss
(http://www.marketwatch.com/story/glencore-steps-up-debt-cuts-as-it-swings-to-loss-2016-08-24).
Glencore shares were down 3.1% on Tuesday.
Jefferies in a note released Tuesday said Glencore's commodity
exposure is a positive, but its costs are likely to creep higher.
"As a result of increases to our unit cost assumptions, we have
lowered our earnings estimates for the company," wrote analyst
Christopher LaFemina.
Shares of copper producer Antofagasta PLC (ANTO.LN) dropped
4.1%, and those of iron ore miner Rio Tinto PLC (RIO) (RIO) (RIO)
lost 3.7%.
Advancers on the London benchmark included Bunzl PLC (BZLFY) .
Shares rose 1.5% after the maker of coffee cups and mops raised its
interim dividend payment
(http://www.marketwatch.com/story/bunzl-reports-rise-in-first-half-profit-2016-08-30)
and posted a 6% rise in first half pretax profit of GBP155.6
million ($203.88 million).
The pound was trading at $1.3088, down from $1.3113 late
Monday.
(END) Dow Jones Newswires
August 30, 2016 04:05 ET (08:05 GMT)
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