FTSE 100 index drops despite Old Mutual's share price rising and miners making gains

James Nickerson
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Old Mutual rallied this morning

The FTSE 100 index traded lower this morning, after having opened with volatility following gains last week.

The UK's blue-chip index fell 0.63 per cent to 6,160 points in early morning trading.

"Investors appear to be slowly starting to drip feed money back in after a turbulent start to the year. As equity markets enjoyed their third successive week of gains it is notable that the sectors driving the current rebound are the same sectors that came under the most pressure at the start of the year," said Michael Hewson, chief markets analyst at CMC Markets.

"Despite this recovery in equity markets there is still some evidence of caution with gold prices also enjoying a decent run, up over 18 per cent year to date, which would seem to suggest that not everyone is totally convinced by the current rebound, or that investors are hedging their bets.

"While equity markets have managed to recover a good proportion of this year’s losses, recent economic data has continued to remain patchy, good in parts, and disappointing in others."

Old Mutual's share price rallied the most this morning, rising 10.36 per cent to 198.31p per share. Over the weekend it was reported the company was considering breaking up into four constituent parts.

After closing up in Australia, BHP Billiton and Rio Tinto also rose. BHP Billiton was up 0.84 per cent to 875.1p per share, while Rio Tinto rose 2.02 per cent to 2,173.25p per share.

Anglo American was also up 4.14 per cent to 616.7p per share and Antofagasta rose 2.63 per cent to 565.25p per share.

But they couldn't stop the FTSE falling.

Randgold Resources fell 2.42 per cent to 6,452.5p per share and Inmarsat dropped 3.15 per cent to 912.25p per share.

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