People look towards Canary Wharf from Greenwich Park in London, Britain December 27, 2020. REUTERS/Simon Dawson/File Photo
Aug 9 (Reuters) – 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 (.FTSE) slipped 0.2% with BP (BP.L), Anglo American (AAL.L), Glencore (GLEN.L) and Royal Dutch Shell (RDSa.L) 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 (.FTMC) fell 0.2%, with Global recruiter Page Group (PAGE.L) leading declines despite saying it would spend 100 million pounds on shareholder returns as trading conditions improved in the first half. read more
The FTSE 100 has gained nearly 10% so far this year but has largely lagged U.S. 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 (VEC.L) gained 2.1% after tobacco company Philip Morris (PM.N) raised its bid for the drugmaker to 165 pence ($2.29) per share.
Deliveroo (ROO.L) surged 9.9% after its German rival Delivery Hero (DHER.DE) took a 5.09% stake in the British food delivery company. read more
Britain’s biggest fund supermarket Hargreaves Lansdown (HRGV.L) 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. read more
Reporting by Shashank Nayar in Bengaluru; Editing by Subhranshu Sahu and Ramakrishnan M.
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