Sector movers: Resource stocks get another hammering

Resource stocks took another familiar hammering on Friday, as metal and oil futures plummeted in London.

The FTSE 100 ended 1.93% or 114.73 points lower at 5,804.10, while the FTSE 250 ended 1.54% or 252.67 points higher at 16,160.60. Oil futures tumbled below $30 per barrel for the first time since 2003.

At 1651 GMT, the Brent front-month futures contract was down 4.27% or $1.32 to $29.56 per barrel, while WTI fell 5.16% or $1.61 to $29.59 per barrel, as oversupply and lacklustre demand permutations, along with the possibility of Iranian sanctions being lifted sent short-sellers into overdrive mode right from early placings during Asian trading hours.

Base metals also took a hammering with most futures contracts in negative territory on the London Metal Exchange. The three-month delivery contracts of copper (down 0.9%), primary aluminium (down 1.1%), lead (down 1.2%), nickel (down 1.2%), tin (down 0.9%) and zinc (down 1.6%) were trading lower just ahead of the LME close.

However, COMEX gold futures contract posted a rise of 1.51% or $16.20 to $1,089.80 an ounce, while spot gold was 1.40% or $15.07 higher in Dubai at $1,093.45 an ounce.

Unsurprisingly, Randgold Resources (up 3.74%) lead the FTSE 100 risers. However, the fallers roster had a veritable whos-who of the mining sector. Anglo American (down 11.49%), Glencore (down 6.51%), BHP Billiton (down 6.39%) and Antofagasta (down 5.98%) took the heaviest hits.

Among the midcaps, Vedanta Resources (down 6.51%) took hammering, but Centamin (up 3.94%) led the FTSE 250 risers.

Away from resource stocks, Tate & Lyle advanced following an encouraging capital markets day. Liberum reiterated its ‘buy’ rating on the stock, saying it laid out credible plans to deliver its ambition to transform the group into a materially Speciality Food Ingredients-focused business by 2020.

Shire rallied after chief executive Flemming Ornskov revealed that the drug developer's internal plans for the merger with Baxalta are much more positive than it set out publicly.

Moneysupermarket slumped after the company’s fourth quarter insurance revenues were hit by stronger competitor marketing activity than anticipated. Revenues for that division fell 10%, down to £28.9m.