FTSE 100 Daily Analysis 16th Dec 2009
The FTSE100 was up 9.36 points at 5,322.36, shares closed slightly higher, taking heart
from a strong start on Wall Street, with gains in pharmaceutical stocks offsetting weak performances from the banks and miners.
Banking issues came under renewed pressure today in London following extensive press coverage of their bonus plans and the cost of bail-outs and with criticism coming from the Audit Commission.
Insurers were prominent among the losers, with Prudential one of the worst performers, down 7.5p at 642.5p, and Aviva off 3.3p at 379.4p. Auto insurance specialist Admiral bucked the trend, up 3p at 1,076p, seen as benefiting from the recent growth in sales of new cars.
Oil majors reversed early losses as crude perked up to $77 a barrel on optimism over the US economy. Shell jumped 15.5p at 1,782.5p and BP added 2.3p at 584.7p.
Miners slumped as metals prices eased as the dollar showed strength, with Rio Tinto down 58.5p at 3,125p, Anglo American 43p lower at 2,607p and Lonmin slipping 48p at 1,809p, while Randgold Resources was the biggest FTSE loser of the session, tumbling 222p at 4,973p as gold retreated to $1,172 an ounce.
Technical Outlook
The FTSE 100(UKX) is unable to trade above the key resistance level of 5270, it put in a double top from yesterday and then succumbed to a sell off.
