FTSE 100 movers: Miners and oilers weigh while IAG climbs

Commodities stocks led the FTSE 100 lower on Wednesday after copper miner Antofagasta reported disappointing production numbers and full year guidance.

The blue chip index was falling increasingly sharply as the day wore on, down 1.4% by mid afternoon, with Antofagasta's 6.5% slide the biggest culprit.

Copper production increased 8.7% to 180,600 tonnes compared to the second quarter, but with production of 503,900 tonnes in the year to date, the company now expects full year production "to be close to the lower end of the original guidance range of 710,000 to 740,000 tonnes”.

With the big miners having rallied strongly in recent months, shares in Anglo American and BHP Billiton joined in the decline on Wednesday.

Decreasing crude oil prices also hit the wider commodities sector, sending Royal Dutch Shell lower, but boosting oil users such as IAG, which flew to the top of the pile.

"As OPEC's already fragile promise to negotiate a production freeze deal in a month's time looks to be falling apart," said analyst Henry Croft at Accendo, adding that Russia may be getting cold feet while members of the cartel are still unable to agree who cuts to curb record production output.

Croft also cited concerns that Iraq’s demands to be exempt from OPEC’s production cut could scupper the deal.

Whitbread continued to fall following its mixed interim results on Tuesday, with some broker downgrades hitting the shares.

Société Generale, for instance, cut its target price but maintained its 'hold' rating as results were in line with or slightly above consensus estimates. "Nevertheless the Costa business is disappointing and the pace or new rooms to be opened will slow."

Supermarket groups were higher despite a caustic note from Goldman Sachs on the sector as it kept is 'sell' rating on the main UK players.

With Tesco trading on a 2.2% forecast free cash show yield for 2018 and Morrison on 4%, "we do not believe these stocks are pricing in any margin risk from rising food inflation", analysts wrote, with 31% and 21% downside to price targets.

"On Sainsbury, we continue to forecast further margin declines in its core grocery business and anticipate falling EBIT at Argos as competition steps up and FX hurts gross margins," but the orange-branded grocer was seen as having 20% downside, less than for peers, so was removed from the 'conviction list'.

FTSE 100 - Risers

International Consolidated Airlines Group SA (CDI) (IAG) 408.90p 1.77%
Tesco (TSCO) 213.50p 1.59%
Sainsbury (J) (SBRY) 243.90p 1.54%
Associated British Foods (ABF) 2,473.00p 1.35%
Marks & Spencer Group (MKS) 338.50p 1.23%
easyJet (EZJ) 936.00p 1.19%
Barratt Developments (BDEV) 474.30p 1.13%
Burberry Group (BRBY) 1,475.00p 1.03%
Coca-Cola HBC AG (CDI) (CCH) 1,828.00p 0.27%
Intertek Group (ITRK) 3,445.00p 0.17%

FTSE 100 - Fallers

Antofagasta (ANTO) 505.50p -6.48%
Whitbread (WTB) 3,564.00p -3.65%
Hargreaves Lansdown (HL.) 1,132.00p -3.00%
Anglo American (AAL) 1,083.00p -2.78%
Sage Group (SGE) 707.00p -2.48%
Royal Dutch Shell 'B' (RDSB) 2,128.50p -2.47%
Micro Focus International (MCRO) 2,120.00p -2.44%
BHP Billiton (BLT) 1,231.50p -2.34%
Land Securities Group (LAND) 1,002.00p -2.24%
RSA Insurance Group (RSA) 547.00p -2.23%