Only on the last week, the benchmark stock gauge of UK experienced the 2nd biggest weekly increase for 2013. However, the stocks declined on today due to the selloff in the shares of the mining companies. Incidentally, the selloff was triggered mainly by the slower than forecast economic growth of China. The benchmark gauge FTSE 100 Index experienced a fall of 40.79 points and is currently at 6343.6. On last week, the gauge went ahead by 2.2%, marking its biggest advance since last January. On the other hand, the broader FTSE All Share Index experienced a tumble of 0.7%. The benchmark gauge of Ireland, ISEQ Index went down by 0.5% as well.
According to the Departmental Head of Research at Charles Stanley Group Plc., Jeremy Batstone-Carr, mining stocks have taken the cue from the weaker than forecasted 1st quarter gross domestic product figures of China. He added that the miners are being driven down due to the metal slamdown, whereas, UK gauge is definitely underperforming, if compared to the other benchmark indexes.
On the other hand, the Ernst & Young Item Club recently stated that the economy of UK will grow less than the earlier forecast made on this year. Even if the Bank of England takes a plan to purchase bonds further, it will have little impact on the recovery process of British economy. Only on January, the group predicted 0.9% rise for British GDP, but the revised report of this month says that the GDP will increase by 0.6%. The growth is expected to accelerate by 1.9% and 2.5% in 2014 and 2015 respectively, according to the same report.
Randgold Resources Ltd. experienced a decline of 8.3% and each share is now priced at 4,545 Pence. On the other hand, Polymetal International Plc. shares declined by 13% to 746 Pence, marking its biggest loss since the company sold shares for public in October, 2011. On the other hand, the biggest primary silver producer, Fresnillo Plc. shares slid by 15% to 1,080 Pence. This is the biggest drop of the company’s shares since October, 2008.
The largest bank in Europe by market value, HSBC Holdings tumbled by 1% to 681.4 Pence. Incidentally, a former software technician of HSBC, Herve Falciani accused that the Swiss Private Bank of HSBC was nothing but an open door for money laundering, resulting into drop in the shares.