Miners, floods and arbitration

Tuesday 29 December 2015

The FTSE 100 edged  higher in early trading after the Christmas break taking its cue from early advances in Asia, although volumes remain on the low side.

“There was still a festive feel to trading today but little Christmas cheer for stocks which have suffered most in recent weeks,” says AJ Bell Investment Director Russ Mould.

“Mining heavyweights Anglo American (LSE:AAL), Glencore (LSE:GLEN) and Antofagasta (LSE:ANTO) occupied familiar territory at or near the foot of the blue-chip board with oil major BP (LSE:BP.) keeping them company as crude oil prices remain under pressure due to a combination of slowing demand and near-record output.

“Insurer RSA Insurance (LSE:RSA) was also among the big fallers following severe flooding in many parts of the UK. Initial estimates put losses at £900m to £1.3bn but this could top £1.5bn if there is more heavy rain with insurers set to pick up about two-thirds of the cost.

“Avocet Mining’s (LSE:AVM) shares jumped in early trading after an arbitration verdict in its dispute lifted the threat to the short-term liquidity of the company.”

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