Mining and banking shares weigh on FTSE

The leading share index fell this morning as heavyweight mining and banking shares weighed on the FTSE 100.

At 9.30am, the FTSE 100 had fallen around 0.3 per cent.

Kazakh copper miner Kazakhmys was the largest blue chip faller, shedding more than four per cent in early deals.

Fellow miners Anglo American and Polymetal fell 3.6 per cent and 2.9 per cent respectively. Analysts at Nomura this morning lowered the rating on Anglo to “reduce”, sending its shares down.

Lloyds Banking Group and HSBC were also large-cap fallers in early deals, down 2.8 per cent and 2.6 per cent respectively. HSBC this morning posted a full-year profit of $20.6bn, down six per cent year on year and below expectations.

Elsewhere, RBS was down 1.5 per cent and Barclays fell 1.4 per cent.

"Some profit taking in early trade was not entirely unexpected," said Richard Hunter, head of equities at Hargreaves Lansdown.

"The shares have risen 28 per cent over the last year, as compared to an eight per cent hike for the wider FTSE 100, and when the dust has settled, there seems little doubt that the market consensus of the shares as a buy will remain firmly intact."

Topping the FTSE 100 was outsourcer Bunzl, which rose 2.5 per cent in early trades. This morning it announced a healthcare acquisition in Brazil.

Energy giant Centrica and utility Severn Trent added 1.9 per cent and 1.6 per cent respectively.

Elsewhere, advertising giant WPP was up 1.6 per cent.

In Asia, the Nikkei closed up 0.4 per cent and in the US, the Dow Jones closed up 0.25 per cent.