London close: Aberdeen Asset Management leads FTSE lower

In contrast to its European peers, the FTSE 100 ended lower on Monday, closing 19.06 points to 6,356.09 as it was pulled down by Aberdeen Asset Management and BHP Billiton.

Aberdeen Asset Management declined as the investment management group said full year underlying pre-tax profits rose only slightly to £491m from £490m due to the slump in Asian and emerging market equities.

BHP Billiton slid after it emerged that Brazilian authorities will demand £3.5bn from the miner, Vale and their Samarco joint venture for the tailings dam burst on 5 November.

In economic data, British consumer credit rose 8.2% year-on-year, matching September’s nine-and-a-half-year high, according to the Bank of England.

Lending to consumers rose by £1.18bn last month, slightly less than forecast, while mortgage approvals for house purchases grew from 69,012 in September to 69,630 last month, falling slightly short of the 69,900 reading analysts had expected.

German inflation improved in November, driven by an increase in food prices, according to an estimate from the Federal Statistical Office Destatis. The consumer price index is expected to have risen 0.4% this month compared to a year ago, following a 0.3% gain in October. Versus a month ago, CPI is estimated to have climbed 0.1% in November after zero growth in October.

The European Central Bank is closely eyeing inflation in the euro-area closely as it prepares for its latest policy decision, to be announced on Thursday. Analysts expect ECB President Mario Draghi to announce further quantitative easing and a cut to the deposit rate to address prolonged low inflation in the Eurozone.

In the US, pending home sales rose for the first time in two months in October, data showed. The index from the National Association of Realtors (NAR) rose 0.2% month-on-month in October from an upwardly revised 1.6% decline in September, although they fell short of analysts’ expectations for a 1% increase

Meanwhile, a widely followed indicator of business conditions fell into negative territory in November, figures released on Monday showed. The Chicago purchasing managers’ index, which measures business conditions across Illinois, Indiana and Michigan, declined from 56.2 last month to 48.7 in November, falling short of analysts’ expectations for a 54 reading.

In company news, Cranswick’s shares jumped on Monday as Investec reiterated its ‘buy’ rating on the stock and raised its target price to 1890p from 1870p after the food producer reported a 22% increase in half year adjusted profits to £31.5m.

Glencore gained after Credit Suisse said the unlike its peers, the company’s marketing business continues to “generate considerable cash flows and this, coupled with asset sales, should allow debt levels to fall over the next 12 months and insulate the balance sheet”.

Sage rose after Canaccord Genuity lifted the stock to ‘buy’ from ‘hold’, noting the shares are up around 40% over the last 12 months.

British American Tobacco edged lower after being accused of bribing politicians and civil servants in a BBC television documentary, which could leave it open to prosecution and major fines. The Panorama investigation alleged that the company bribed government officials in a number of East African countries.

Morrisons was under pressure on reports it is in danger of falling out of the FTSE 100 when the index updates its list on Wednesday.

Market Movers

FTSE 100 (UKX) 6,356.09 -0.30%
FTSE 250 (MCX) 17,389.02 0.72%
techMARK (TASX) 3,230.62 0.14%

FTSE 100 - Risers

Glencore (GLEN) 96.19p 4.69%
Taylor Wimpey (TW.) 194.60p 3.13%
Whitbread (WTB) 4,548.00p 2.64%
Sports Direct International (SPD) 729.00p 2.46%
Berkeley Group Holdings (The) (BKG) 3,211.00p 2.42%
InterContinental Hotels Group (IHG) 2,549.00p 2.41%
Intertek Group (ITRK) 2,817.00p 2.21%
Anglo American (AAL) 408.65p 2.12%
Sage Group (SGE) 586.50p 2.09%
Hargreaves Lansdown (HL.) 1,496.00p 1.70%

FTSE 100 - Fallers

Aberdeen Asset Management (ADN) 319.00p -4.72%
SSE (SSE) 1,434.00p -1.78%
United Utilities Group (UU.) 963.50p -1.53%
Unilever (ULVR) 2,834.00p -1.46%
Royal Bank of Scotland Group (RBS) 302.40p -1.40%
Morrison (Wm) Supermarkets (MRW) 152.50p -1.36%
Sky (SKY) 1,106.00p -1.34%
BHP Billiton (BLT) 796.90p -1.32%
Royal Dutch Shell 'B' (RDSB) 1,652.00p -1.28%
Reckitt Benckiser Group (RB.) 6,230.00p -1.25%

FTSE 250 - Risers

Petra Diamonds Ltd.(DI) (PDL) 64.15p 10.13%
Cranswick (CWK) 1,797.00p 5.71%
Telecom Plus (TEP) 1,131.00p 5.60%
CLS Holdings (CLI) 1,924.00p 5.14%
Evraz (EVR) 83.20p 4.59%
BGEO Group (BGEO) 1,933.00p 4.49%
Elementis (ELM) 254.10p 4.40%
Petrofac Ltd. (PFC) 825.00p 4.10%
Redrow (RDW) 453.60p 3.80%
Greencore Group (GNC) 335.00p 3.62%

FTSE 250 - Fallers

Drax Group (DRX) 225.10p -3.80%
Premier Oil (PMO) 71.25p -3.06%
Allied Minds (ALM) 415.00p -2.17%
GCP Infrastructure Investments Ltd (GCP) 118.80p -1.82%
AL Noor Hospitals Group (ANH) 1,135.00p -1.73%
TalkTalk Telecom Group (TALK) 240.00p -1.68%
Clarkson (CKN) 2,330.00p -1.60%
Cairn Energy (CNE) 142.90p -1.52%
Nostrum Oil & Gas (NOG) 370.80p -1.46%
Woodford Patient Capital Trust (WPCT) 102.40p -1.16%