FTSE falls as UK business confidence drops post-election
Source - SMW
The FTSE 100 had a bad start to the week as weakness in miners, healthcare and consumer stocks dragged on performance.
In the UK, the Institute of Directors revealed a sharp drop in business confidence and concern over political uncertainty, which added pressure on Prime Minister Theresa May who failed to gain a majority on Friday.
This resulted in a hung government and calls for May to resign after she lost seats in last week's election.
Fresnillo (FRES) ticked 1.7% lower to £16.95.
Medical device companies ConvaTec (CTEC) and Smith & Nephew (SN.) declined 1.9% and 0.9%, while British American Tobacco (BATS) and Nurofen owner Reckitt Benckiser (RB.) fell by up to 1%.
Oil bounced back from a drop last week as Brent crude oil gained 1% to $48.73 per barrel.
Gold and copper were stable at $1,267 per ounce and $5,842 per tonne.
Investors looked ahead to the interest rate decision by the Bank of England on Thursday.
Following the worst one-day share price performance for Apple in over a year, technology stocks fell out of favour with the market.
The tech sell-off weighed on Asian equities on Monday, with Hong Kong's Hang Seng suffering the biggest decline of 1.2% to 25,708.
FTSE 100 RISERS AND FALLERS
In corporate news, Glencore (GLEN) proposed to acquire its rival Rio Tinto's (RIO) 100% interest in Coal & Allied Industries for $2.5bn in cash, with a royalty linked to coal prices. The news failed to impress investors as both stocks nudged up to 0.5% higher.
FTSE 250 RISERS AND FALLERS
Acacia Mining (ACA) continued to struggle ahead of the Presidential Committee's findings in Tanzania. The government accused Acacia of operating illegally in the country by under-reporting the amount of gold it was exporting. It became the biggest mid-cap faller as the stock plummeted 9% to 273.1p.
Management services company Mitie (MTO) continued to bounce back from recent share price weakness. Despite ditching the dividend and stacking up an operating loss of £42.9m, the stock gained 9.9% to 271.3p as it signalled a return to 'modest growth'.
Engineer Weir's (WEIR) acquisition of Singapore firm KOP and expansion into Asia failed to impress investors as the stock retreated 2.5% to £18.53.
SMALL CAP RISERS AND FALLERS
The biggest winner among the small caps was Great Western Mining (GWMO) as the stock rocketed by 68% to 0.6p. The exploration company reported its latest increase in mineral resources at the M2 copper-gold prospect in Nevada after a comprehensive review.
Elsewhere in the mining sector, Greatland Gold (GGP) applied for licences covering a large cobalt exploration property in the Pilbara region of northern Western Australia. The stock rose 11.9% to 0.7p.
Used cars were becoming more popular with drivers - a trend that Motorpoint (MOTR) took advantage of. Overall sales were up 12.7% to £822m in the year to the end of March 2017 thanks to year-on-year volume growth of over 7% in the used car market.
Sound Energy (SOU) nudged 1.5% lower to 66p on an update concerning drilling operations in Morocco and Italy, including re-entry into the Moroccan Koba-1 well. The chief executive, James Parsons, also works on reviving Echo Energy (ECHO) where he is chairman. Echo appointed Rockhopper (RKH) chief operating officer Fiona MacAuley as its new CEO.