Sector movers: Mining, oil and gas sectors drag London market lower

Mining and oil related stocks led the London market lower on Monday, as the commodities downturn and China’s economic correction continued to weigh on trading sentiment.

Just shy of the closing bell, the FTSE 100 was down 0.03% or 0.44 points at 6,550.30, while the FTSE 250 was down 0.07% or 12.04 points at 17,608.89, with a predictable theme of natural resources related stocks negating gains made elsewhere.

Last week, China’s imports fell 8.1% year-on-year in July with Beijing instigating a string of currency devaluations. With base metals and minerals, so reliant on Chinese consumption, set to cost the country more, futures tumbled yet again on the London Metal Exchange.

Past the midway point in trading, three-month delivery contracts of primary aluminium (down 1.0%), copper (down 1.1%), lead (down 1.3%), tin (down 0.5%) and zinc (down 0.9%) were all trading lower, with nickel being the only exception trading up 0.3%. Additionally, oil futures remained in negative territory with Brent’s October contract beginning weekly proceedings below $50 per barrel.

Invariably, oil and gas, and mining stocks fell, albeit the decline was steeper in case of mid to smallcaps. Ophir Energy (down 9.56%) was the biggest FTSE 250 faller, with Lonmin (down 5.22%), Evraz (down 4.41%) and Premier Oil (down 4.26%) in close attendance.

On the FTSE 100, Glencore was the biggest faller down 1.65% or 2.85p to 170p. BHP Billiton (down 1.43%) and Weir Group (down 1.30%) were among the other major fallers. However, Tullow Oil (up 2.25%) and Acacia Mining (up 4.45%) defied respective sector sentiment to post a rise.

Hawkish comments by Bank of England policymakers pointing to a UK rate rise arriving sooner rather than later, hit selected property stocks with Zoopla (down 2.18%) and Bovis Homes (down 3.16%) trading lower, but Foxtons Group rose 3.83%.

TUI shares were up 1.64% after The Times reported that the travel firm was thinking about spinning off some of its assets. Deutsche Bank raised its target price to 1385p from 1235p. Finally, CLS Holdings topped the session registering a 4.73% rise after it was given a 'Buy' rating by Liberum Capital on Friday.