London close: Resource and utility stocks drag markets lower, data comes in weak

UK stocks bounced off their lowest levels of the day by the close but still ended in the red as falling mining, energy and utility shares provided a drag.

After touching a low of 6,713.50, London's FTSE 100 finished down 20.49 points (-0.3%) at 6,740.58, ending the week down 2.5%.

Brent crude was trading 2% lower at $55.92 a barrel in afternoon trade after the International Energy Agency warned that crude may have further to fall.

In its monthly report, the Paris-based institution said that the partial rebound that occurred at the start of the year seems to have paused and that US supply has showed "little sign of slowing down [and] continues to defy expectations".

Weak economic data was also weighing on sentiment on Friday: UK construction output unexpectedly dropped 2.6% in January; US producer prices registered a surprise 0.5% drop in February, while US consumer confidence slid in March.

Meanwhile, Standard & Poor’s said Greece remains on ‘credit watch negative’, citing uncertainties surrounding the nation in concluding its funding agreement with creditors.

Resource stocks, utilities drop

Producers BG Group, Tullow Oil, Soco International and Premier Oil were all trading with heavy losses, along with oil and gas services groups Hunting, Wood Group and Petrofac, as crude prices declined.

However, Afren was the standout faller, dropping 29% after the struggling oil and gas group proposed a debt-for-equity swap with creditors to address its funding needs and recapitalise its capital structure. If shareholders don't approve the plan, the company will have no choice but to initiate a sale.

Mining stocks were also weak, including BHP Billiton, Glencore and Anglo American.

Energy stocks such as SSE and Centrica declined ahead of the Labour Party conference, during which Ed Miliband is expected to outline plans to cut energy prices if his party wins the General Election.

Supermarkets Tesco and Sainsbury were trading lower as Nielsen revealed they had continued to lose market share.

Meanwhile, shares in Premier Inn and Costa owner Whitbread received a boost from UBS, which upgraded its rating on the stock from 'sell' to 'neutral' and Deutsche Bank, which lifted its rating on the stock to 'buy'.

Market Movers
techMARK 3,192.55 +0.80%
FTSE 100 6,740.58 -0.30%
FTSE 250 17,109.47 +0.28%

FTSE 100 - Risers
Meggitt (MGGT) 575.00p +2.77%
British Land Co (BLND) 824.50p +2.42%
Reckitt Benckiser Group (RB.) 5,840.00p +2.28%
ARM Holdings (ARM) 1,186.00p +2.07%
GKN (GKN) 368.70p +1.85%
Land Securities Group (LAND) 1,220.00p +1.84%
AstraZeneca (AZN) 4,557.00p +1.74%
Whitbread (WTB) 5,335.00p +1.43%
TUI AG Reg Shs (DI) (TUI) 1,168.00p +1.39%
Shire Plc (SHP) 5,525.00p +1.28%

FTSE 100 - Fallers
Tullow Oil (TLW) 298.30p -3.21%
BHP Billiton (BLT) 1,389.50p -3.20%
BG Group (BG.) 812.60p -3.10%
Glencore (GLEN) 277.35p -2.94%
Standard Chartered (STAN) 955.20p -2.43%
Royal Dutch Shell 'B' (RDSB) 2,005.50p -2.31%
Anglo American (AAL) 1,055.00p -2.22%
Weir Group (WEIR) 1,788.00p -2.13%
Royal Dutch Shell 'A' (RDSA) 1,921.50p -2.01%
SSE (SSE) 1,462.00p -1.94%

FTSE 250 - Risers
Thomas Cook Group (TCG) 158.70p +6.80%
Diploma (DPLM) 815.00p +6.47%
St. Modwen Properties (SMP) 468.40p +5.97%
PayPoint (PAY) 867.50p +5.79%
esure Group (ESUR) 224.20p +5.31%
Hellermanntyton Group (HTY) 351.90p +4.33%
Just Eat (JE.) 347.00p +4.33%
Jimmy Choo (CHOO) 170.00p +4.29%
Jardine Lloyd Thompson Group (JLT) 1,042.00p +4.20%
Ted Baker (TED) 2,581.00p +3.70%

FTSE 250 - Fallers
Afren (AFR) 4.65p -28.46%
Soco International (SIA) 143.20p -9.71%
Vedanta Resources (VED) 486.70p -7.73%
Hunting (HTG) 453.90p -5.79%
Cairn Energy (CNE) 152.10p -5.65%
Premier Oil (PMO) 130.00p -5.32%
Hikma Pharmaceuticals (HIK) 2,231.00p -5.27%
Ophir Energy (OPHR) 119.20p -4.87%
Kaz Minerals (KAZ) 198.00p -4.39%
Petrofac Ltd. (PFC) 826.00p -4.34%