LONDON (Alliance News) - London's main markets traded in a relatively tight range for most of the day Friday, before closing mixed, as investors took a step back from valuations swollen by a Fed-inspired mid-week rally.
The US Federal Reserve late Wednesday surprised investors by maintaining its quantitative easing programme unchanged, ensuring a continued supply of cheap money.
The FTSE 100 closed down 0.4% Friday at 6,596.43, with the FTSE 250 down 0.7% at 15,032.27. The AIM All-Share index, by contrast, squeaked out an 0.6% gain to 794.31, having hit a 2013 high of 795.35 earlier in the day.
Alecto Minerals PLC and Centamin PLC were two of the biggest movers in the main London stock indices Friday, as Alecto said it had entered into a joint venture with Centamin for operations in Ethiopia.
At the UK equities market close, Alecto was the biggest riser on the AIM All-Share, closing up 104% at 2.35 pence. The commodity exploration company, with operations in Ethiopia and Mauritania, said Centamin has bought into two Ethiopian exploration licenses owned by Alecto. Similarly, Centamin was one of the biggest gainers on the FTSE 250, closing up 3.3% at 45.50p, as the joint venture was confirmed.
Following Centamin's attempt on Thursday to oust Nyota Minerals Chief Executive Richard Chase, Nyota's shares jumped to 2.20p by early afternoon Friday, as investors anticipated a potential takeover or joint venture. However, after the deal between Alecto and Centamin was announced, Nyota's shares dropped back, as it appeared to make the deal with Centamin less likely. Even so, Nyota shares closed at 1.50p apiece, up 28% on the day and double where they stood just two days ago.
Foxtons saw a strong demand for its offering on its first day of trading Friday as investors sought another way to buy into the gathering recovery in the UK housing market. The stock jumped by over 20% in early trade, lifting the estate agency's valuation above GBP780 million, having already been priced at the upper end of the targeted range. At the London close, Foxtons shares were quoted at 271.132p.
Gold prices fell sharply Friday, dropping by more than 2% to USD1337.68 per ounce. Consequently, mining stocks were heavy fallers, with the FTSE 350 sector closing down 1.5%. Fresnillo closed down 2.9% at 1,037.6767p, Randgold Resources down 3% at 4,693.7374p, Anglo American off 1.5% at 1,610.073p, and Hochschild Mining down 3.6% at 205.24p.
Oil prices were close to flat at the close of the UK equity market. A barrel of Brent stood at USD108.94
The euro dipped after Eurozone consumer sentiment index data for September was reported to have improved to negative 14.9, missing consensus forecasts of negative 14.5, according to FXstreet.com. At the UK equities market close, the euro is trading at JPY134.466, GBP0.8440 and USD1.3517.
The pound dropped mid-afternoon, reaching a two day low of USD1.5991 and a more than two-week low of CHF1.4561.
At the close of the UK equity markets, US stock indices are all down. The DJIA is down 0.3% at 15,584.98, the S&P is down 0.3% at 1,717.64, and the Nasdaq has dropped 0.1% to 3,785.88
The weekend brings the German federal election on Sunday. Chancellor Angela Merkel and her main opponent, Peer Steinbrueck, are set to go head to head in what is anticipated to be a tight election.
Monday's data calendar sees German import price figures at 0700 BST. French Markit manufacturing PMI data is scheduled for 0758 BST, with the German equivalent at 0828 BST, and EU Markit manufacturing at 0858 BST. Italian wage inflation figures are due to be released at 0900 BST. Later in the day, Chicago federal national activity index data is released at 1330 BST, ahead of Markit US manufacturing figures at 1358 BST.
By James Kemp; jameskemp@alliancenews.com
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