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July 5, 2019, 7:45 a.m. EDT

Mining giants and housebuilders drag London markets down

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By Callum Keown


Getty Images
The pit at Citic Pacific Mining's Sino Iron magnetite iron ore project in the Pilbara region of Western Australia, AFP PHOTO/ Amy COOPES. (Photo credit should read AMY COOPES/AFP/Getty Images)

Mining giants dragged London markets down after China’s major steel companies launched an investigation into the recent record surge in iron ore prices.

The FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +1.59%   slipped 0.3% led by the blue-chip index’s heavyweight miners and U.K. housebuilders, after supplier SIG /zigman2/quotes/205165085/delayed UK:SHI +1.34%   blamed continued weakness in the construction sector for a double digit decline in sales growth.

What’s moving the market?

Mining stocks came under pressure for a third consecutive day following the probe into surging iron ore prices.

A weak trading update from building supplier SIG, which fell 5%, impacted housebuilders across the London markets.

Russ Mould, investment director at AJ Bell, said: “Investors got further insight into the dire state of the U.K. construction sector this week as a first half trading update from building products business SIG revealed a double-digit decline in like-for-like revenue for its domestic operations.

“The news from [the] company follows on from figures earlier this week which showed that June was the worst month for the industry since April 2009, as well as several recent warnings from other construction-related firms.”

Which stocks are active?

Rio Tinto /zigman2/quotes/208934945/delayed UK:RIO +1.02% suffered the sharpest fall among the FTSE 100 mining giants, weakening 2.5% as Chinese steel firms launched a probe into surging iron ore prices. Rivals Anglo American /zigman2/quotes/201381512/delayed UK:AAL +1.51%   and Evraz /zigman2/quotes/202291633/delayed UK:EVR +2.14%   also dropped around 2%.

Building supplier SIG /zigman2/quotes/205165085/delayed UK:SHI +1.34%   slipped more than 6% as weakness in the U.K. construction sector led to a double digit decline in like-for-like sales growth.

Aviation services company John Menzies /zigman2/quotes/202362697/delayed UK:MNZS -0.11%   plunged 11.5% after a profit warning, citing weak cargo volumes and flight schedule reductions.

/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,626.76
+119.09 +1.59%
Volume: 244,172
Jan. 24, 2020 1:47p
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/zigman2/quotes/205165085/delayed
UK : U.K.: London
94.50 p
+1.25 +1.34%
Volume: 214,666
Jan. 24, 2020 1:43p
P/E Ratio
143.18
Dividend Yield
3.97%
Market Cap
£551.63 million
Rev. per Employee
N/A
loading...
/zigman2/quotes/208934945/delayed
UK : U.K.: London
4,471.00 p
+45.00 +1.02%
Volume: 928,972
Jan. 24, 2020 1:47p
P/E Ratio
7.34
Dividend Yield
6.91%
Market Cap
£71.87 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/201381512/delayed
UK : U.K.: London
2,146.00 p
+32.00 +1.51%
Volume: 1.10M
Jan. 24, 2020 1:46p
P/E Ratio
8.68
Dividend Yield
4.21%
Market Cap
£26.02 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/202291633/delayed
UK : U.K.: London
382.70 p
+8.00 +2.14%
Volume: 737,444
Jan. 24, 2020 1:47p
P/E Ratio
4.50
Dividend Yield
19.90%
Market Cap
£5.41 billion
Rev. per Employee
£140,781
loading...
/zigman2/quotes/205165085/delayed
UK : U.K.: London
94.50 p
+1.25 +1.34%
Volume: 214,666
Jan. 24, 2020 1:43p
P/E Ratio
143.18
Dividend Yield
3.97%
Market Cap
£551.63 million
Rev. per Employee
N/A
loading...
/zigman2/quotes/202362697/delayed
UK : U.K.: London
439.50 p
-0.50 -0.11%
Volume: 37,566
Jan. 24, 2020 1:45p
P/E Ratio
13.24
Dividend Yield
4.66%
Market Cap
£370.86 million
Rev. per Employee
N/A
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