London pre-open: Stocks seen flat as investors eye OPEC meeting
Updated : 07:31
Stocks in London were set to open broadly flat on Monday as investors look to a meeting of the Organization of the Petroleum Exporting Countries in Vienna on Wednesday.
The FTSE 100 was called to open unchanged at 6,840.
CMC Markets’ Michael Hewson said: “As per usual it’s all about who will have do the business of cutting or capping output, with both Iran and Iraq reluctant to cut or cap too much, while Russia has paid lip service to a production freeze only. Without an agreement from these three any prospect of a deal is dead in the water, and while no one will want to do Saudi Arabia any favours, if there is no deal oil prices could fall further, and back below the July lows just above $40 a barrel.
“All this uncertainty is likely to mean that oil markets are likely to remain choppy as OPEC and non OPEC oil ministers toy with the oil market.”
In corporate news, JD Sports Fashion has acquired outdoor pursuits retail chain Go Outdoors for £128.3m from owners that include private equity group 3i. JD has paid £112.3m cash and assumed £16m of debt to purchase Sheffield-based Go Outdoors, which is profitable from its 58 stores, most of which are based in out-of-town retail parks.
Antofagasta said on Monday that it has agreed to sell the Michilla mine to Chilean mining group Haldeman Mining Company for up to $52m following the closure of the mine at the end of last year.
The deal includes the open pit mine, the underground mine, the cathode production plant and various mining properties.
Antofagasta will retain the acid terminal and other facilities located at Caleta Michilla, which are currently used by its Centinela and Antucoya mining operations.
Annual profits fell by more than a quarter at Aberdeen Asset Management as its funds under management were hit by almost £33bn of outflows.
With net revenue down 14% to £1.0bn, underlying pre-tax profits shrank 28.3% to £352.7m, with the board keeping the total dividend flat at 19.5p. Assets under management grew 10% to £312.1bn.