FTSE 100 miners dug into a hole while RBS flies high

By Rachel Cooper, City Reporter (Markets) Published: 6:51PM GMT twenty-five February 2010

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A supervision inform expelled on Thursday indicated that commercial operation investment such as corporate spending on buildings and vehicles fell suddenly during the last 3 months of 2009, reigniting concerns about the gait of the UK"s exit from recession.

And to supplement insult to injury, a inform from the European Commission cut the foresee for UK mercantile expansion in 2010, that left investors fretting.

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Dragging the large-caps in to the red were mining and oil companies, that slid as commodity prices forsaken at the behind of in light of worries about the tellurian mercantile recovery.

Xstrata was the large-caps greatest faller, shifting 50p to �10.00, Lonmin fell 61p to �17.62, Rio Tinto forsaken 112p to �32.50 and Anglo American slid 78p to �23.06.

Their decrease came as bottom steel prices fell in London with copper shifting as the dollar gained opposite a range of currencies, shortening the interest of industrial metals as an pick investment.

Analysts referred to that direct for line could go on to decrease over the subsequent 3 months on concerns that the tellurian mercantile liberation competence be slower than expected.

Cairn Energy was 9.9 worse at 329.3p after Goldman Sachs cut the Edinburgh-based oil and gas path-finder to "sell" from "neutral" and oil prices fell in London.

Capita, the outsourcing company, additionally fell 31 to 712p after observant stipulate wins had slowed.

Private equity group, 3i Group, forsaken at the behind of 10.6 to 258.7p after British Seafood the fish importer and distributor, that it piece owns, fell in to administration.

But Evolution Securities called the disaster a "one-off/accident rather than symptomatic of a wider malaise".

At the alternative finish of the table, RBS hung onto the yellow jersey, rock rock climbing 6.23pc to 38.38p after the waste narrowed extremely last year, following a record-breaking �24.3bn loss in 2008.

The bank, that is 84pc state-owned, posted a loss of �3.6bn in 2009 less than the �5bn the marketplace had been expecting.

Analysts at Deutsche pronounced the loss was softened than accord and the formula reliable "a bank undergoing poignant change, but with government meditative the misfortune is past, restructuring move well and batch cheap, we design a certain reception".

Nomura pronounced that trends for the last entertain were in-line with the estimates and the company"s opinion was some-more certain than previously.

"Current year estimates are approaching to be softened and might even pitch to increase from losses.

"All this is incrementally certain and additionally has a certain review opposite to Lloyds."

Lloyds Banking Group ticked up 1.41 to 54.9p as expectation mounts over the full-year formula to be voiced today.

After Carnival, the journey operator, surged on Wednesday following jot down "wave season" bookings at the Carnival Cruise Lines division, alternative legal holiday operators ticked up on Thursday.

Tui Travel, the organisation at the behind of Thomson and First Choice Holidays gained 7.1 to 267.8p and Thomas Cook Group was 1.3 softened at 230.1p. Carnival itself remained on the personality house on Thursday, up 20p to �24.49.

Among the second-liners, GKN, that creates tools of aeroplanes for Airbus and Boeing, was in stick position, rock rock climbing 5.21pc to 109p, after the increase kick expectations.

Jostling for the tip mark was Rank Group. Investors took a punt on the bingo gymnasium and casino operator, promulgation it up 3.9 to 98.05p, after the association reported increase forward of forecasts and voiced it is to begin profitable dividends again.

Analysts at Investec lifted their aim cost to 137p from 125p on Thursday, progressing their "buy" rating.

Filtrona, that creates products together with cigarette filters and lamination for passports, ticked up 2.7 to 187p, notwithstanding a decrease in profits. Overall margins are approaching to urge in 2010 according to the company.

Analysts at Cazenove described the total as a "strong set" of results.

"The opinion appears to be mending for majority tools of the commercial operation and in all regions," combined the broker, progressing the "outperform" rating and a aim cost of 182p.

Panmure Gordon defended the "hold" recommendation, but increasing the aim cost to 200p from 184p, observant their stream estimates were as well pessimistic.

On a bustling day of results, Bodycote, the engineer, slipped at the behind of 7.3 to 178p, after increase slumped as the downturn strike the businesses. The association warned that full liberation in direct might take multiform years.

However, Panmure Gordon stranded with the "buy" recommendation, with analysts observant that, in their view, "the fuller liberation is a some-more approaching scenario". They gave Bodycote a aim cost of 182p.

Hunting, the oil and gas services company, forsaken at the behind of twenty-three to 579p after increase fell as reduce oil prices and a healthy gas over-abundance marked down training activity.

Evolution Securities, however, steady the "buy" rating, observant that movement is improving.

But trailing the mid-caps FTSE 250 fell 132.24 points altogether to 9226.94 was Hays, acrobatics 9.1 to 104.2p. Investors forlorn the recruiter after it reported a thrust in first-half increase as companies tempered employing and the association expected a dump in open zone spending. But the association astounded analysts by progressing a division at 1.85p.