Prices correct at London market close

Commodity stocks dragged on London’s blue chip index today with significant losses across the sector.

Investors might have been hopeful this morning when Mexican metals miner Fresnillo declared record annual silver production of 42.1 million ounces, up 2 per cent year on year.

It also announced record annual gold production of 368,995 ounces – a massive 33 per cent increase on the same period in 2009, exceeding expectations, but the company’s shares were hit as precious metals prices fell.

Fellow miner Anglo American, also fell victim to the market sentiment on mining stocks, losing 3 per cent while luxury goods concern Burberry Group completed the worst three performers, dropping 2.3 per cent at 1,055 pence.

There was better news though for Cambridge-based chipmaker ARM Holdings after its larger US sector-mate, Intel, dazzled the market.

It reported 2010 was the best year in the company’s history, with sales up 24 per cent on last year at £27.5 billion with its final quarter margin at 67.5 per cent.

ARM witnessed another stunning day as a result, rocketing 5.3 per cent to 530.5 pence as investors anticipated similar news with analysts predicting demand likely to increase yet further.

Outsourcing service provider Capital was up 2.1 per cent at 697.5 pence while interdealer broker ICAP was up 2.2 per cent to 570.5 pence in spite of a gloomy mood for Financial stocks.