MIDDAY REPORT: Headline shares extended losses in midday trade, with mining shares taking a tumble as BHP Billiton went hostile in its bid for Potash Corporation and ENRC warned of short-term volatility in commodities.
At noon, the FTSE100 was down 40.66 points at 5,309.89 with the FTSE250 17.2 points lower at 9,894.65 and the FTSE Smallcaps off 3.55 points at 2,793.04.
The minutes of the last BoE MPC meeting released today showed Andrew Sentance as the only voice of opposition to holding UK interest rates at current record levels. Sentance opted for a 25 basis points rise.
M&A activity again occupied investors this morning, with news from BHP Billiton that it is to go hostile in its bid for Potash Corporation with a $130 a share offer. BHP shares slipped 39.5p at 1,876.5p in response.
Aviva, which is being urged by major stakeholders to look again at the RSA approach, fell 4.9p at 392.4p, while RSA eased 0.8p at 124.6p. Legal & General was a rare riser in the sector, up 2.8p at 96.05p.
Among the banks, only Lloyds made any progress, up a modest 0.38p at 71.07p. Barclays slid 1.05p at 326.05p and Royal Bank of Scotland shed 0.02p at 47.23p.
News of yet another failing travel company heaped pressure on holiday operator TUI Travel, the shares dipping 0.5p at 205.8p.
British Airways continued to enjoy the lull in union activity, gaining 3.8p at 225.2p.
Other notable gainers included builders’ merchant Wolseley, up 23p at 1,356p, and Whitbread, 5.22p better at 1,399p.
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