UK Markets Lock in Losses for the Week

FRIDAY MARKET UPDATE: Miners weighed down the FTSE 100 on Friday, leading the large-cap index to a 1.3% loss for the week

Alanna Petroff 12 October, 2012 | 6:24PM
Facebook Twitter LinkedIn

The UK markets ended the week in the red: both the FTSE 100 and FTSE 250 indices declined on Friday, making this the fourth trading day this week that both of the indices endured losses.

“European markets remained in the red and range-bound for most of the final trading session of the week,” said Fiona Cincotta, a market analyst at City Index. “[Decent] results from JP Morgan Chase & Co (JPM) and better-than-expected US consumer confidence figures did little to inspire this side of the Atlantic where markets were looking for a catalyst for their next move. Even news that the European Union won the Nobel Peace Prize failed to inject a sparkle,” she said.

The FTSE 100 closed the week at 5,793, after declining by 1.3% between Monday to Friday. The FTSE 250 closed at 11,838, after being pushed down by nearly 2% throughout the week.

The three main decliners on the FTSE 100 on Friday were miners. Shares in EVRAZ (EVR), Kazakhmys (KAZ) and Antofagasta (ANTO) all dropped by more than 3.5% each.

“Mining stocks added pressure to the FTSE 100 as Credit Suisse cut its price target for companies in the metals and mining sector and also reduced its 2013 EPS for most by 15% – 40%. Slowdown in demand from China, falling margins and returns and weak cash flows are obstacles which they will need to overcome,” said Cincotta.

The main gainer on the FTSE 100 on Friday was Hargreaves Lansdown (HL.). Investors bid shares up by 3.5% after the financial services company reported a jump in revenue and assets under management in the first quarter.

“Hargreaves Lansdown released a first quarter trading statement showing revenue up 20% for the quarter and assets under management up £2.2 billion to £28.5 billion.  Three-quarters of this was due to market movements,” said Philip Graves, deputy fund manager at Fundamental Tracker Investment Management.

The numbers were particularly impressive because the first quarter for Hargreaves Lansdown, from July to September, is typically a quiet period, said Cincotta.

Weekly Market Updates

Monday: Calm Before the Q3 Earnings Season Storm
Tuesday: UK, Global Economy Concerns Weigh on FTSE
Wednesday: Markets Slip on Global Growth Concerns
Thursday: Risk Appetite Returns to FTSE; Burberry Tops the Risers

Market Performance (October 8 - 12)

FTSE 100: -1.32%
FTSE 250: -1.85%
FTSE All Share: -0.59%
FTSE Small-Cap: -0.44%
FTSE AIM 100: -0.97%
FTSE Fledgling: +0.43%

Morningstar's Most Popular Articles (September 6 – October 12)

Top 20 High-Yielding Stocks
Fund Managers’ Favourites: Top Dividends Picks   
Distress Over Dividend Delays 
Biking Business and Train Troubles
5 ETFs to Ride Out the Recession 

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

About Author

Alanna Petroff

Alanna Petroff  is a financial journalist with Morningstar UK.