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China reform jitters hit miners as UK shares extend falls
November 12, 2013 / 12:30 PM / 4 years ago

China reform jitters hit miners as UK shares extend falls

* FTSE 100 down 0.2 percent
    * Concerns that Chinese reforms may be toned down rattle
    * GlaxoSmithKline miss in heart drug study hits healthcare
    * Vodafone rallies as M&A play after mixed update

    By David Brett
    LONDON, Nov 12 (Reuters) - Concerns over pending economic
reforms in China weighed on mining stocks on Tuesday, dragging
the FTSE 100 further from five-month highs, and drugmaker
GlaxoSmithKline fell after missing a goal in a major study.
    Miners took 4.5 points of London's blue chip
index, tracking weaker metals prices on expectations that
reforms in a 10-year plan to be announced by top consumer China
will be toned down, potentially hitting demand for basic
resources, traders said. 
    Healthcare firms also took 4.5 points off the
FTSE 100 with heavyweight GlaxoSmithKline down 1.2
percent after an experimental drug designed to combat heart
disease failed to meet its main goal in the first of two big
late-stage clinical studies. 
    Banks and insurers combined to take 10
off points, handing back most of their previous session's gains.
    London's blue chip index fell 16.30 points, or 0.2
percent to 6,712.07, by 1202 GMT. The FTSE 100 has slipped from
a five-month high of around 6,777.50 scaled in late October. 
    Technical analysts said they remained positive on the
outlook for the market, which is still up about 14 percent this
    "The UK index is still within striking distance of its
recent high and there is little in the current technical picture
to suggest that it is about to fall away," Bill McNamara,
technical analyst at Charles Stanley, said in a note.
    "Last week's trading low, at 6,643, is probably the level to
watch in terms of support."
    The UK's fifth largest listed company by market
capitalisation, Vodafone, lent some support after early
weakness, rebounding 1.5 percent after a mixed trading update as
traders saw M&A value.
    "In a consolidating industry, we believe a smaller Vodafone
is vulnerable to a bid from a large global player looking to
expand its European mobile footprint," Jonathan Jackson, head of
equities, Killik & Co, said. 
    Pay-TV group BSkyB rebounded 2.1 percent on bargain
hunting following sharp falls in the previous session after it
lost the rights to show Champions League football to rival BT
    Irish building supplies group CRH topped the list of
FTSE 100 gainers, rising 3 percent after announcing a review of
its business following a 2 percent rise in third-quarter
    BSkyB and CRH were among the heaviest traded stocks on the
FTSE 100 around midday, each at between two and three times
their 90-day daily average.

 (Reporting by David Brett; Editing by John Stonestreet)

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