LONDON: London’s FTSE 100 fell on Monday, dragged down by heavyweight energy and mining stocks as concerns about commodity demand returned due to a global rise in coronavirus infections.
The blue-chip FTSE 100 slipped 0.2% with BP, Anglo American, Glencore and Royal Dutch Shell being among the top drags.
“The drop seems to be a short-term blip rather than a market-wide worry as support for commodities still seems to be unshaken,” said David Madden, an analyst at Equiti Capital.
The mid-cap index fell 0.2%, with Global recruiter Page Group leading declines despite saying it would spend 100 million pounds on shareholder returns as trading conditions improved in the first half.
The FTSE 100 has gained nearly 10% so far this year but has largely lagged US and European peers, hurt by a resurgence in COVID-19 infections and inflation fears outweighing optimism around robust corporate earnings.
As the economy re-opens, the market knows higher inflation will not be an issue as long as it is in tandem with economic growth, Madden said.
Among other stocks, Vecture gained 2.1% after tobacco company Philip Morris raised its bid for the drugmaker to 165 pence ($2.29) per share.
Deliveroo surged 9.9% after its German rival Delivery Hero took a 5.09% stake in the British food delivery company.
Britain’s biggest fund supermarket Hargreaves Lansdown dropped 9.8% to the bottom of the FTSE 100 after it missed profit estimates, while drawing record new clients on the back of rising retail participation.
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