Sector Movers: Miners, foods retailers send London market lower

London market slipped back into the red on Friday trading, with miners and food retailers bearing the brunt of the selloff.

The FTSE 100 came in at 6984.43 down 0.80% or 56.49 points, as traders indulged in an end of the week profit taking spree as Thursday’s gainers in the shape of bankable tobacco stocks, and software and IT shares, riding high on positive sector news, fell.

Both tobacco blue chips – British American Tobacco (down 2.33%) and Imperial Tobacco (down 0.06%) were trading lower. Software & IT services segment, riding high on plethora of gainers on Thursday, shed 1.51% or 23.79 points at 1,546.89.

Greece, which officially slipped into a recession, and lacklustre US data impacted investor sentiment but metals and mining sector and food retailers’ shares plummeted largely owing to other sector specific influences.

In case of the latter, the relationship between suppliers and retailers is set to be scrutinised by the Financial Reporting Council following Tesco’s accounting scandal.

The accountancy watchdog unveiled plans to focus audit inspections on the food retailing sector this year, after the FTSE 100 group overstated last year’s expected interim profits by approximately £250m.

The FRC said it will “pay particular attention to the audit of revenue recognition and complex supplier arrangements” at retail and food, drink and consumer goods manufacturers in general and not just Tesco (down 1.76%).

Alongside Tesco, rivals Sainsbury’s (down 2.18%), Morrisons (down 3.39%) and Ocado (down 3.62%) all took a hit. High Street baker Greggs (down 1.57%) was also dragged lower by wider sector negativity.

Mining, minerals and by extension selected extractive industry engineering services providers also continued to be impacted by uncertainty in the wider commodities market. Metals market was rocked Norsk Hyrdo’s decision to up aluminium production with most metals in mixed territory.

Evraz (down 3.11%) was among the biggest fallers on the FTSE 250, alongside a number of small caps London Mining (down 0.15%), Tri-Star (down 5.00%), Berkeley Minerals (down 13.16%) , Armdale Capital (down 15.91%) and African Copper (down 25.00%)

Large caps Anglo American (0.87%), Rio Tinto (0.97%) and Antofagasta (down 1.32%) ensured a troubling session for the sector all around.

Worst five sectors

Metals & Mining 1,660.49 -49.25 -2.88%
Tobacco 43,769.62 -712.40 -1.60%
Food & Drug Retailers 3,062.90 -47.59 -1.53%
Beverages 14,312.85 -255.41 -1.75%
Software & Computer Services 1,546.89 -23.79 -1.51%