LONDON — The FTSE 100 (INDEXFTSE:UKX) rose an impressive 2% today to close at 6,406 points, boosted by expectations of further economic stimulus across the eurozone — although it did take news of German private-sector shrinkage to raise such hopes. Will there be a further interest rate cut at the next meeting of the European Central bank? Some are now predicting exactly that.
Meanwhile, some of the index’s constituents ran in the opposite direction. Here are three that lagged today.
Fresnillo Plc (LON:FRES)
While it was a generally positive day for FTSE 100 shares, falls were led by gold and silver miner Fresnillo Plc (LON:FRES). Fresnillo Plc (LON:FRES) shares fell 2.2% to 1,092 pence — and they’re down 42% since the start of the year as mining shares continue to suffer from weak commodities prices.
On top of general mining demand, the fall in gold prices to a two-year low didn’t help — nor did last week’s quarterly production report, which revealed a 3.5% drop in gold production to 117,500 ounces.
Tullow Oil plc (LON:TLW)
Tullow Oil plc (LON:TLW) shares faltered a little, dropping 0.9% to 1,037 pence after the firm reported a dry well. Its Priodontes-1 well, off the shore of French Guiana, has failed to find any oil or gas after being drilled to a depth of 6,318 meters. It will now be plugged and abandoned. The Stena Ice Max rig that was being used for it will now be moved to the firm’s Cebus exploration well, which should be spudding in the next two weeks.
The Tullow Oil plc (LON:TLW) share price is now down 17% since its April 2 month-high of 1,256 pence, and it’s down about 30% over the past 12 months.
Across the board today, it’s mainly the mining sector that’s being hit. And along with gold miners in general, Randgold Resources Ltd. (ADR) (NASDAQ:GOLD) is down a bit, having dropped 0.8% to 4,831 pence. Falling precious-metal prices seem to have taken the shine off Randgold Resources Ltd. (ADR) (NASDAQ:GOLD)’s recent announcement that its major Kibali gold project in the Democratic Republic of Congo is set to deliver its first gold this year.
After a sustained climb from last summer’s lows of below 4,600 pence took Randgold Resources Ltd. (ADR) (NASDAQ:GOLD) shares to an October high of 7,891 pence, the price has since crashed back to a new 52-week low of 4,452 pence this month.
The article Why Fresnillo, Tullow Oil, and Randgold Resources Lagged the FTSE 100 Today originally appeared on Fool.com is written by Alan Oscroft.
Alan Oscroft has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
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