Market update (PM): Miners fall as Chinese growth fuels rate rise fears
Rob Langston, 20 January 2011
Mining groups were among the hardest hit stocks at the close of trading with four companies in the top five biggest fallers.
However, engineering group Invensys was the biggest loser dropping 7.8 per cent to 329.6p after announcing its third quarter results for the three month period after 30 September 2010.
Despite claiming the company was 'on track' to deliver improved performance for the end of the year, Invensys finished the day as the biggest faller.
However, Jeremy Batstone-Carr, analyst at Charles Stanley rated the company as 'accumulate' to take advantage of current share price weakness.
Fresnillo, African Barrick Gold, Kazakhmys and Xstrata all saw share price drop by more than 5 per cent as concerns over a hike in Chinese interest rates, after strong growth data was published, hit the sector.
Precious metals miner Fresnillo dropped 5.9 per cent to 1,346p, while African Barrick Gold fell 5.4 per cent to 518p.
Peer Kazakhmys saw share price decrease by 5.2 per cent to 1,538p and Xstrata slid 5.1 per cent to 1,388.5p.
The biggest riser at the close of trading was Barclays, which saw share price rise by 2.4 per cent to 303.25p after Investec initiated coverage of the bank with a 'hold'.
While National Grid enjoyed a 1.5 per cent boost in share price to 539p after being upgraded by analysts at JP Morgan Cazenove to 'overweight'.
Capital Shopping Centres also received a boost ahead of its impending extraordinary general meeting and a vote on the £1.6 billion acquisition of the Trafford Centre rising 1.2 per cent to 377.5p.
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