Business

Mining stocks drag down FTSE 100

London stock brokers (file photo) Image copyright AFP

(Close): London's FTSE 100 dipped in afternoon trading, with mining stocks dragging the index down.

At the close, the FTSE 100 was down 58.3 points or 0.95% at 6,104.19.

The downturn reversed an earlier rise in the wake of the Bank of England's inflation report and decision to leave interest rates unchanged.

Anglo American led the losers' list, down 6.85%, while Antofagasta and Glencore fell by 4.6% and 4.2% respectively.

But the pound made modest gains, up 0.06% against the dollar at $1.4456 and up 0.41% against the euro at €1.2697.

The world's biggest caterer, Compass Group, was the best riser, up 1.6%.

Investors continue to digest its results, which were released on Wednesday and were better than expected.

Sainsbury's was another big loser, falling almost 4%, with Centrica and Admiral down 3.7% and 2.8% respectively. All three went "ex-dividend" on Thursday.

Shares in companies that have just paid out their half-yearly dividend to shareholders tend to fall immediately, because new buyers will not receive that payment.