Saudi Arabia approves cooperation agreement with US for the use of outer space for peaceful purposes    Quality of Life Program CEO highlights Saudi urban transformations at UN-Habitat conference in Cairo    AlHisn Big Time Studios unveiled to transform film and TV production in Riyadh    Saudi Aramco's Q3 net income falls 15.5% to SR103 billion amid a jump in annual cash flows    Almarai wins 'Best Corporate Sukuk' at Asset Triple A Islamic Finance Awards    Top climber falls to death after rare Himalayan feat    US voters flying home in time for election    Drones and snipers on standby to protect Arizona vote-counters    India's Modi condemns violence after Canada temple incident    Harris and Trump make final push in must-win Pennsylvania    Mitrovic's hat-trick leads Al Hilal to 3-0 victory over Esteghlal    Al Ahli extends perfect start with 5-1 victory over Al Shorta    Saudi crown prince, Tunisian president review bilateral relations in phone call    SFDA Chief visits premier biotechnology and medical firms in China    Al-Khereiji: Collective action in combating terrorism is a must for achieving stability and prosperity    Quincy Jones, titan of US music, dies aged 91    Neymar expected to join Al Hilal squad for AFC clash against Esteghlal, says coach Jesus    Al Qadsiah secure 2-0 victory over Al Ettifaq in first Eastern Derby since 2021    Hidden sugars in Asia's baby food spark concerns    HONOR unveils pre-order of the stunning HONOR MagicBook Art 14 Featuring an ultra-slim design, HONOR Eye Comfort Display and AI Cross-OS WorkStation    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Muted Eid celebrations for millions of Nigerian Muslims    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



FTSE down as miners crack, M&S falls after update
Published in Saudi Press Agency on 10 - 01 - 2006

Britain's leading share index backed further away from 4-1/2 year highs on Tuesday, led down by miners whose losses were intensified by disappointing news from U.S. peers, while Marks & Spencer fell after a trading update.
Antofagasta , Xstrata and Anglo American fell 3 to 5 percent after U.S. copper giant Phelps Dodge cut its fourth quarter profit forecast and aluminium firm Alcoa reported lower profits.
Precious metals firm Johnson Matthey closed down 3.6 percent as dealers reported Goldman Sachs placed some 5.6 million of its shares.
Market watchers said Phelps's problems relating to copper price hedging and output shortfalls were specific to the company but latched onto by investors as a reason to ditch miners after a spectacular rally in 2005, fuelled by booming commodity prices.
The FTSE 100 index finished 42.7 points or 0.8 percent lower on Tuesday at 5,688.8, back from Monday's peak of 5,750.3 its highest reading since June 2001. Miners played a big part in helping the index to close 2005 with a 16 percent gain.
"There had to be a catalyst some time for a bit of profit taking, we'd been making high after high on the broad index," said Alex Scott analyst at private client money manager Seven Investment Management.
"Miners have been important players in that so I don't think you have to be concerned about a major turning point taking place here. It looks like a pullback in what's broadly a reasonably healthy market," he added.
Marks & Spencer, Britain's biggest clothing retailer closed down 1.9 percent as investors took a trading update telling of a stronger than expected performance in food as a sign to take profits after a near-50-percent gain in the shares since September.
Sales in the 13 weeks to Dec. 31 comfortably beat analysts' top estimates but Chief Executive Stuart Rose warned that the retail environment in Britain remained challenging, pointing to rising utility and rent bills.
"Marks & Spencer gave a good update but they did warn that this year is going to be difficult for the retailers again," said a trader.
M&S EFFECT
The M&S statement may have punctured its share price but other firms were encouraged by the update, including ready meals and pizza maker Northern Foods , up 5.3 percent. M&S is the midcap company's biggest customer. Grocery chains Tesco and Sainsbury gained modestly. Sainsbury is due to issue a trading statement on Thursday, Tesco updates investors next week.
UK banks fell after investment bank Lehman painted a bearish picture for the sector, arguing it looked set to underperform European peers. Dealers reported that Citigroup said the sector would undershoot the UK equity market. Barclays and HSBC both lost more than 1 percent.
"They (Citigroup) basically bashed the ones with high exposure to the mortgage sector -- like Barclays and Northern Rock ," said a dealer.
Mergers and acquisitions speculation, which played a big part in fuelling the FTSE 100's 2005 rally flickered to life with utility Scottish & Southern up 0.8 percent on talk Swedish power supplier Vattenfall might bid. Sector rivals Scottish Power and United Utilities also traded higher. Vattenfall declined to comment.
Publisher Pearson and peer Reed Elsevier both fell 2.4 percent after fellow textbook publisher McGraw-Hill indicated a toughening market in 2006.
"McGraw Hill are more bearish on the education market than Pearson and Reed, and McGraw Hill are also citing margin pressure," said a dealer.
British Airways was another weak point, off 2.7 percent as it revealed plans to compete with the low-cost sector by relaunching its CitiExpress regional subsidiary.
"They are cutting UK regional fares. I would imagine that is not going to be helping the bottom line," one trader said.
Among mid-cap movers, Abbot Group jumped 5.7 percent after the oil-rig builder said its 2005 results would be in line with forecasts and announced $275 million in new contracts.


Clic here to read the story from its source.