* FTSE 100 index down 0.7 percent
* Resource stocks among the worst performing this year
* Sainsbury's falls despite good results
By Alistair Smout
LONDON, Nov 14 Miners led the FTSE 100
share index down on Wednesday as global growth worries and
strikes in southern Europe weighed on stocks that are
vulnerable to a downturn in economic activity.
Investors were awaiting progress on talks aimed at giving
Greece a much needed infusion of aid, as a coordinated general
strike on the Iberian peninsular brought the challenges the euro
zone faces back into focus.
Equities have been hit frequently during the year when
concerns have surfaced about growth momentum in major economies,
while the euro zone will also continue to be a drag on activity
as long as the path out of the debt crisis remains unclear.
"I think we're really falling in line with the rest of
Europe," said Alastair McCaig, Market Analyst at IG Index.
"Underlying metals have been fluctuating of late, and the
uncertainty that has probably come on from the likes of Japan in
the last couple of days has affected the commodity prices out
there... and commodity stocks will feel the ramifications of
that," McCaig said, citing Japanese data out at the beginning of
the week and an investor confidence survey which suggested
growth fears in Germany.
Evraz was the biggest faller on the index, losing
4.8 percent as the debt-laden steel maker asked bondholders to
alter the terms of one of its bonds, and one of its coal
suppliers, NWR, forecast a tough end to the year.
Another resources company, Eurasian also lost 2.8
percent. Eurasian is the worst performing FTSE 100 stock this
year, down around 54 percent, Thomson Reuters data showed, with
its latest results pointing to pressure from weaker markets and
They are followed by Evraz on the year-to-date faller list,
down just under 38 percent, and Kazakhmys, another
miner, down around 26 percent.
The London market's blue-chip index was down 0.7 percent at
5,748.42 points at 1153 GMT, trapped between support at a
two-month low in the 5,710 area, which triggered rebounds twice
in the previous three sessions, and this week's resistance at
Also weighing on the FTSE on Wednesday was a slip in
supermarkets retailer J Sainsbury's shares, down 2
percent despite strong results as traders said they were took
profits on the stock as the group's strong first-half results
had already been priced in.
They also flagged concerns that key shareholder the Qatari
Investment Authority may be close to selling its 25.9 percent
stake in the group.
Along with miners, energy, another "cyclical" sector which
rises and falls with the economic cycle, also weighed on the
FTSE 100, with Shell taking over 9 points off
On the upside, however, oil and gas engineer AMEC
was in fact the biggest gainer on the index, adding 2.8 percent,
after it reaffirmed guidance and said its order intake remains
Oil & gas pumps and valves maker Weir gained 2.1
percent, the second-biggest FTSE-100 riser, bouncing back from
recent falls, as it is bolstered by read-across from AMEC and an
upgrade to 'neutral' from 'reduce' from Nomura.
(Additional reporting by Rosalba O'Brien, Simon Jessop and
Francesco Canepa; Editing by Toby Chopra)