FTSE 100 Pulled in Both Directions; Ends Flat

Xstrata, Glencore, Unilever and AstraZeneca are some of the biggest market movers

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Alanna Petroff | 02-02-12 | E-mail Article

Stock price movements were mixed during trading on the FTSE 100 Index on Thursday, with some specific shares soaring while others dropped. This meant the market was pulled in both directions and so the FTSE 100 remained flat for the day, adding just 5 point, or 0.1%, to close at 5,796.

Shares in the mining giant Xstrata (XTA) and the commodity trading company Glencore (GLEN) rallied strongly, rising by 9.9% and 6.9% respectively. The rallies come after Xstrata confirmed that Glencore had formally approached it with plans for a "merger of equals". An all-share merger could create a combined group worth more than £50 billion, creating a company that would potentially dominate the global mining industry. For more information about this story and Morningstar analyst commentary, read Glencore and Xstrata: Merger of Unequals?

Shares in Unilever (ULVR) put a weight on the overall FTSE 100 Index, dropping by 4.4% after the world’s second-largest consumer-goods maker reported weak quarterly sales growth and said it expects “gloomy” economic conditions to persist throughout the year. The sales growth was well below analysts' expectations.

AstraZeneca (AZN) also warned investors of tough times ahead as patents on key drugs are due to run out. Shares in the drugmaker sank by 3.4%.

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Alanna Petroff is a financial journalist at Morningstar.co.uk. Morningstar welcomes your feedback, as do other Morningstar.co.uk readers. Please share your thoughts in the Comments box below.

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FTSE 100 Pulled in Both Directions; Ends Flat

Xstrata, Glencore, Unilever and AstraZeneca are some of the biggest market movers