FTSE falls on further BP problems

Wednesday, 09 June 2010 12:08

By myfinances.co.uk staff

The FTSE 100 Index retreated 22.45 points, or 0.5 per cent, to 5,005.94 as stocks erased earlier gains as a fall in BP outweighed a boost in confidence that followed a Reuters report that Chinese exports increased and a rise in raw material shares.

BP fell for a third day, sliding to its lowest price since October 2008, while BHP Billiton and Xstrata gained as metals prices advanced after Reuters reported a surge in China's exports in May and higher-than-estimated new loans.

BP, which makes up about 5.79 per cent of the FTSE 100's weighting, tumbled 4.6 per cent to 390p. US President Barack Obama stepped up pressure on chief executive Tony Hayward to stop the worst oil leak in US history.

BHP Billiton rose 0.4 per cent to 1,775.5p, while Xstrata climbed 0.7 per cent to 930.9p. Copper, lead and nickel prices rose on the London Metals Exchange.

Exports from China grew about 50% from a year earlier and new loans were 630 billion yuan ($92 billion), Reuters said, citing three unnamed people who said a government official unveiled the figures at an investor conference today. The statistics bureau declined to comment.

Misys soared 18% to 264p after saying it agreed to sell its majority stake in Allscripts healthcare-information business for about $1.3 billion, facilitating an all-stock merger between the unit and Eclipsys Corp.

Asos gained 4.8 per cent to 663p, set to gain the most since May 27th. The online clothing retailer reported a nine-week sales increase of 58%. Pre-tax profit rose to £20.3 million pounds in the year ended March 31st, from £14.1 million a year earlier.

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