iNVEZZ.com, Monday, March 10: Britain’s blue-chip index has lost ground today, dragged down by mining stocks with investors focusing on weak export data from China, the world’s top metals consumer.
Shares in Rolls-Royce Holding Plc (LON:RR) have advanced today after the FTSE 100 engine maker said that it would acquire Daimler’s stake in their power systems joint venture.

FTSE 100 inches lower

As of 12:18 UTC, the FTSE 100 index had lost 2.64 points to be 0.04 percent down at 6,710.03 after having posted a 1.1 percent loss in the previous session. The UK’s benchmark index has been under pressure with weak figures from China hitting London-listed miners. Numbers released over the weekend showed that Chinese exports had fallen 18.1 percent last month from a year earlier.

Shares in silver miner Fresnillo (LON:FRES) have dropped 2.80 percent to 901.50p, while copper miner Antofagasta (LON:ANTO) has eased 1.71 percent to 862.00p. Among the more diversified miners, BHP Billiton (LON:BLT) and Rio Tinto (LON:RIO) have also posted declines, with BHP’s share price shedding 1.24 percent to 1,825.50p and shares in Rio Tinto dropping 1.59 percent to 3,149.00p.

Reuters quoted analysts as pointing out that any market swings should be interpreted in the context of an equities rally which has helped the FTSE 100 bounce nearly five percent off lows seen in early February.

“The atmosphere is one of cautious bullishness,” IG market analyst Chris Beauchamp told Reuters.

Vodafone Group (LON:VOD) has been another top FTSE 100 faller today after news emerged late on Friday that the telecoms group had raised its bid for Spanish cable company Ono to €7 billion (£5.8 billion).

(Vodafone share price: Group set to acquire Ono) Vodafone’s share price is currently 2.67 percent down at 232.28p.

Footsie winners

The standout blue-chip gainer today has been Rolls-Royce with the engine maker announcing that it would buy Daimler’s 50 percent stake in their joint venture Rolls-Royce Power Systems. (Rolls-Royce share price rises as Daimler agrees to sell stake in JV)

“The market has taken the news well this morning from RR’s perspective,” Saxo Bank trader Adam Seagrave told Reuters. “They are well positioned to finance the deal from their net cash balance, and whilst the venture has already added new capability to RR’s reciprocating engines business, the feeling is they will be able to extract further synergies in a long-term growth market.”

As of 12:40 UTC, Rolls-Royce’s share price had added 2.41 percent to 1,050.70p.

Shares in GlaxoSmithKline (LON:GSK) have also gained ground with the pharma giant reporting that it had succeeded in increasing its stake in its Indian unit to 75 percent. (GSK share price: UK drugmaker increases stake in Indian unit) GSK’s share price is currently 1.02 percent up at 1,670.30p.

The FTSE 100 was 0.10 percent down at 6,706.02 points as of 13:13 UTC on March 10, 2014.

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