FTSE 100 movers: Oil prices sink blue chip market

The FTSE 250 is set to end the week on a sour note, with the blue chip market sitting down 119.49 points (2.02%) at 5,798.74 by mid-afternoon Friday.

Falling oil prices affected most of the market’s biggest fallers, as oil stayed below $30 a barrel. That hit the mining sector, especially BHP Billiton which said it expects to book a $7.2bn (£5m) impairment charge on the value of its onshore US assets in its half-year results due to the steep drop in oil.

The writedown, which will cut the company’s onshore US net operating assets to around $16bn, is the second in its US oil and gas assets in six months. BHP noted oil prices have fallen over 30% in the last three months after the disruption of OPEC and following stronger-than-expected non-OPEC production. Although the miner reckons prices will bounce off current lows, it has cut its short to medium-term price assumptions, while the group’s long-term forecasts reflect the market's attractive supply and demand fundamentals. The news also affected sector peers Anglo American, Glencore, Antofagasta and Rio Tinto.

The global downturn in stocks has also hit shares in Hargreaves Lansdown, Old Mutual, RBS and Aberdeen Asset Management, seeing them all feature in the fallers list. Since the start of the year, the FTSE 100 has lost over 7%.

Tesco pared back some of the gains made yesterday from its third quarter results. On Thursday it said group LFL sales bounced back with a 2.1% rise in the six weeks to 9 January, with the UK LFLs climbing 1.3% as the prior year's three '£5 off £40' national coupon campaign was abandoned.

Investors will hope this indicates Tesco has turned over a new leaf, rather than being just a flash in the pan, as the prior 13-weeks to 28 November saw UK sales decline to 1.5%, though this still beat market forecasts. Over the full 19 weeks to 9 January, LFLs grew by 0.4%, though at actual currency rates, sales declined 2.2%. Chief executive Dave Lewis put the Christmas improvement down to lower prices, a strong product range and much improved customer service.

Of the few risers of the day, Randgold Resources was at the top of the list as confidence in oil prices sank. The company’s shares were up nearly 2.6% as gold prices rose. Spot gold was up 1.38% to $1,093.27, edging closer to hitting $1,100 again.

FTSE 100 - Risers

Randgold Resources Ltd. (RRS) 4,338.00p 2.58%
Shire Plc (SHP) 4,175.00p 1.09%
Next (NXT) 6,710.00p 0.60%
Merlin Entertainments (MERL) 409.10p 0.59%
SABMiller (SAB) 4,076.00p 0.28%
Admiral Group (ADM) 1,614.00p 0.19%

FTSE 100 - Fallers

Anglo American (AAL) 234.20p -10.93%
BHP Billiton (BLT) 611.50p -6.93%
Glencore (GLEN) 73.35p -6.70%
Hargreaves Lansdown (HL.) 1,225.00p -5.99%
Antofagasta (ANTO) 352.50p -5.47%
Rio Tinto (RIO) 1,643.00p -5.30%
Old Mutual (OML) 150.90p -5.03%
Royal Bank of Scotland Group (RBS) 265.60p -4.12%
Aberdeen Asset Management (ADN) 223.50p -3.87%
Tesco (TSCO) 161.50p -3.87%