Sector movers: Mining and oil stocks end week in dire straits

The blue chip FTSE 100 ended lower by 0.27% or 17.59 points at 6,550.74, while FTSE 250 ended marginally up 0.14% or 25.46 points at 17,620.93. However, both indices felt the heat from the ongoing commodities market turmoil.

At 1603 BST, the WTI front month futures contract was up 0.33% or 14 cents at $42.37 a barrel following 2.4% decline to a six-year low overnight. Concurrently, Brent was down 0.85% or 42 cents at $48.80 a barrel, with oversupply issues expected to hound the market for a while yet.

Precious metals markets stayed suitably lacklustre with the market squaring a probable September US interest rate hike against safe haven demand in wake China’s currency devaluation.

COMEX gold December delivery was broadly flat at $1,115.10 an ounce, while spot gold was up 0.16% or $1.75 to $1,113.35 an ounce. COMEX silver was down 0.42% or six cents at $15.34 an ounce, while spot platinum drew further away from the $1,000 an ounce shedding 0.26% or $2.55 to $990.05 an ounce.

With platinum being in general retreat, Lonmin ended the week down 4.58% or 1.81p at 37.71p as the biggest FTSE 250 faller. Oil and gas stocks Ophir (down 3.13%) and Wood Group (down 2.86%) were other major fallers of the session, alongside Drax Group (down 4.24%).

Blue chips Glencore (down 2.23%) and Weir Group (down 1.62%) narrated a similar tale of woe for the FTSE 100. Kaz Minerals (down 2.86%), Tullow Oil (2.57%) and Petrofac (down 2.36%) were other major names in both sectors to end lower.

Oil major BP fell 1.17% as the firm faced a potential $48m fine after a US regulatory judge ruled that the oil giant’s energy traders rigged the natural gas markets in Texas following hurricane Ike in 2008.

On the positive side, TUI shares continued their uptick leading the travel sector higher on the back of a 19% third quarter profit rise. The shares also gained after JP Morgan and Jefferies lifted their target price on the stock.

Housebuilders Taylor Wimpey and Barratt Developments were both up on a return to growth for UK construction output and new UK government funding aimed at building homes for first-time buyers on brownfield sites.