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London midday: Oil stocks lead UK markets lower

Mon, 20th Oct 2014 11:49

Anyone hoping for a positive start to the week on the stock market following the recent volatility would have been disappointed on Monday as UK equities suffered more steep falls.London's FTSE 100 was trading 0.8% lower at 6,259 by midday with energy stocks leading the fallers as oil prices weakened."Traders like volatile markets as they're necessary in order to create tradable opportunities, but too much volatility can be as unwelcome as none at all," said analyst Craig Erlam from Alpari.Despite a partial recovery on Friday, European equity markets registered their fourth consecutive weekly decline last week on the back of concerns about the spread of Ebola, slowing global growth, bond yields and the outlook for US monetary policy.With no major data due for release, investors will be looking ahead to a wave of economic indicators from China due out on Tuesday, including gross domestic product (GDP) estimates for the third quarter.Chinese GDP is forecast to have slowed to an annual growth rate of just 7.2%, from 7.5% in the second quarter. Industrial production, retail sales and fixed-asset investment data for September is also due out.Spirit, Daisy Group jump on takeover offersPub group Spirit was making strong gains after receiving a fresh takeover offer from rival Greene King at about 109.5p per share, equal to £723m. Spirit has told Greene King it would recommend the offer subject to approval of other terms and is in talks with them.Shares in AIM-listed telecoms company Daisy Group also surged after the board reached an agreement on a recommended cash offer of £494m from a consortium of investors including its boss Matthew Riley.Leading the downside on the FTSE 350 were oil and gas stocks including BG Group, Shell, BP, Cairn Energy, Ophir Energy and Premier Oil. Brent crude was down 0.5% at $85.77 a barrel as it remains near four-year lows reached last week.Supermarket group Tesco was trading higher ahead of its interim report on Thursday, alongside which the company should provide initial findings from an investigation into accounting irregularities.Pharmaceutical firm Shire saw its stock fall after announcing that interim chief financial officer James Bowling would be leaving next year to join Severn Trent. The announcement came as the water provider revealed it would be reducing the number of its board members from 11 to eight.Rolls-Royce was subdued following a 11% drop the previous session after the engine maker lowered its full-year revenue guidance. Analysts at JPMorgan Cazenove, Investec and Liberum all lowered their ratings on the stock on Monday.IAG was flying higher after Liberum named the stock as its top pick in the European airline industry. The broker highlighted "opportunities for the brave" across the sector after concerns about Ebola, Eurozone growth and excess capacity hammered sentiment over the past few weeks.President Energy made its first-ever oil discovery at its majority-owned Pirity concession in the Paraguayan Chaco region, causing shares to rocket over 50% early on.Market MoverstechMARK 2,607.54 -0.62%FTSE 100 6,259.49 -0.81%FTSE 250 14,731.56 -0.18%FTSE 100 - RisersTesco (TSCO) 178.75p +2.41%TUI Travel (TT.) 345.60p +1.92%InterContinental Hotels Group (IHG) 2,196.00p +1.86%Associated British Foods (ABF) 2,599.00p +1.17%Land Securities Group (LAND) 1,044.00p +1.06%Barclays (BARC) 215.30p +1.03%Direct Line Insurance Group (DLG) 267.00p +0.91%International Consolidated Airlines Group SA (CDI) (IAG) 352.30p +0.54%St James's Place (STJ) 671.50p +0.52%Rio Tinto (RIO) 3,110.50p +0.37%FTSE 100 - FallersBG Group (BG.) 1,032.50p -3.05%ARM Holdings (ARM) 851.50p -2.69%Petrofac Ltd. (PFC) 1,032.00p -2.64%Kingfisher (KGF) 291.90p -2.37%Royal Dutch Shell 'B' (RDSB) 2,189.00p -2.30%Tullow Oil (TLW) 512.00p -2.29%Royal Dutch Shell 'A' (RDSA) 2,100.50p -2.26%Sainsbury (J) (SBRY) 239.60p -2.12%GKN (GKN) 300.40p -1.77%BP (BP.) 421.20p -1.70%FTSE 250 - RisersFerrexpo (FXPO) 89.85p +3.93%Go-Ahead Group (GOG) 2,423.00p +2.93%Lonmin (LMI) 186.00p +2.48%Afren (AFR) 99.75p +2.31%Bellway (BWY) 1,644.00p +2.18%Bovis Homes Group (BVS) 811.00p +2.14%Entertainment One Limited (ETO) 308.10p +1.88%Bwin.party Digital Entertainment (BPTY) 90.15p +1.86%Riverstone Energy Limited (RSE) 848.00p +1.80%Taylor Wimpey (TW.) 115.60p +1.76%FTSE 250 - FallersEvraz (EVR) 123.40p -4.12%Just Eat (JE.) 264.70p -3.96%Hochschild Mining (HOC) 119.20p -3.09%Cairn Energy (CNE) 158.30p -2.88%Debenhams (DEB) 58.65p -2.66%Ophir Energy (OPHR) 189.40p -2.57%Stock Spirits Group (STCK) 299.50p -2.38%Supergroup (SGP) 1,038.00p -2.35%Premier Oil (PMO) 255.50p -2.03%Daejan Holdings (DJAN) 4,841.00p -2.00%
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