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Published On: Tue, Jun 11th, 2013

FTSE declines by almost 1 percent on central bank concern

Stocks on the London Stock Exchange fell for a second consecutive day today on the back of fresh concerns over central banks and their willingness to expand on their current financial stimulus programs. The Bank of Japan took no action on their lending program after it was heavily predicted that they would expand on their $1.6 trillion program. Additionally, speculation as to the Federal Reserve’s next move continued, which caused government bond yields to rally and peak at a 14 month high.

The FTSE 100, London’s blue-chip index, fell by 60.37 points, or 0.9 percent, closing the day at 6340.08 after clawing its way back from 1.9 percent in the red during afternoon trading and joining indices across the globe in widespread declines.

Miners were the worst hit group for the second day running with six of the days fifteen worst performers coming from the sector. Evraz PLC were bottom of the FTSE on a percentage basis with declines of 7.30 points, or 5.86 percent, closing out at 117.30. Polymetal International PLC finished the day with a slip of 27.00 points, or 4.19 percent and a closing price of 617.00. Fresnillo PLC, Anglo American PLC and Antofagasta PLC were the other three decliners in the sector with contractions of 3.76 percent, 3.52 percent and 2.91 percent respectively.

While they weren’t one of the days poorest performers, it is also worth noting the decline of 1.58 percent, or 28.50 points, by BHP Billiton PLC — the index’s biggest miner. The company saw their price slide to 1778.50 by the close of the days trading.

Advances on the blue chip were in short supply, with no company making an advance that broke the 1 percent mark. Royal Dutch Shell PLC lead the index, climbing 16.50 points, or 0.75 percent thanks to a surge inside the last half an hour of trading in London.

Today’s sell off hit a very large and broad range of stocks as investors realised stocks were not going to rise, so instead placed their wealth in other assets.

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About the Author

- Gregory previously worked for a leading financial news publication and is now assistant news editor of financialtrading.com.

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