Sector movers: Oilfield services stocks drag London market lower

Oilfield services and natural resources related stocks pushed the London market lower on Thursday, as the commodities sphere had to contend with another volatile session.

The FTSE 100 fell 0.68% or 42.22 points to 6,186.99, while the FTSE 250 was down 0.11% or 18.52 points at 17,043.45, as base metal futures tumbled on the London Metal Exchange yet again, and the oil market continued on a rocky patch.

Past the midway point of the LME session, three-month delivery contracts of primary aluminium (down 0.1%), lead (down 0.9%), nickel (down 2.6%), tin (down 1.4%) and zinc (down 2.0%%) were in negative territory.

At 1532 BST, the Brent front month futures contract was down 0.74% or 37 cents to $49.38 per barrel. However, WTI futures, up 0.11% or five cents to $47.20, narrowed the spread to Brent and extended an uptick overnight.

Oilfield services companies were among the biggest losers of the session. Blue chip Weir Group shed 2.58% or 34 cents to 1284p with engineer Babcock International (down 2.52%) not far behind. Biggest fallers on the FTSE 250 also came from the oilfield services sector with Kier Group (down 4.61%), Hunting (down 6.88%) and Petrofac (down 3.36%) in the mix.

Mining and metals stocks headed lower with Fresnillo (down 2.72%) among the biggest blue chip fallers, while Lonmin (down 3.38%) continued to suffer on the FTSE 250. Electronics sellers and distributors were also among the fallers with Premier Farnell (down 15.98%) and Electrocomponents (down 3.04%).

There were no significant risers among the blue chips, with IAG the standout gainer on the likelihood that it will be the next to raise full-year guidance following in the contrails of smaller rivals Ryanair and Easyjet that have been boosted by record tourist numbers in Europe.

The British Airways owner has been cruising at altitude since Monday when the share maintained a confirmed technical breakout above four-month highs, approaching April's all-time peak.