Meggitt had a double dose of bad news for investors as it told them trading had been "slightly" below expectations and a supply hiccup could cost 20m pounds. The FTSE 100 aerospace and defence manufacturer warned it now expected 2013 revenue growth rates to be in the "low single digits". It had given guidance of mid single digit revenue growth for the full year at its interims in August.
RBS was also significantly lower after it said it will not split into 'good' and 'bad' banks and will instead create an internal 'bad bank' where it will shelve off £38bn of its toxic assets. The group reported a 14% fall in core operating profit to £1.28bn in the third quarter, while non-core operating losses widened to £845m from £586m a year earlier due to exit and restructuring costs as the bank prepares to return to privatisation.
Randgold Resources tracked the gold price
lower, with shares
declining despite several positive reports from brokers Numis Securities and Deutsche Bank, both of which reiterated their 'buy' ratings on the stock.
Antofagasta continued to fall one day after the mining group's quarterly production report. Antofagasta reported a drop in gold and copper production in its third quarter reflecting lower grades at its mining operations.
A disappointing UK manufacturing report also hurt both companies, along with Fresnillo. The UK manufacturing purchasing managers index (PMI) slipped to 56 in October from a revised reading of 56.3 in September, missing the 56.4 forecast. A reading above 50 signals expansion.
Glencore Xstrata shares dropped after it announced that Australian mining company PanAust has agreed to buy an 80% stake in the group's Frieda River copper and gold project in Papua New Guinea for $75m.
Meanwhile, shares in Vodafone were lifted by growing speculation that US giant AT&T was plotting a takeover of the UK mobile company. Executives at AT&T were putting together plans for a possible takeover of the company next year, reported Bloomberg citing people familiar with the situation.
IAG climbed after Deutsche Bank reiterated its 'buy' rating on the stock, with a target price of 360p, ahead of its results due out next week.
Shares in Royal Dutch Shell regained some of yesterday's heavy losses, which occurred after the group said its earnings declined more than expected due to weaker refinery conditions, higher costs and lower volumes. Chief Executive Officer Peter Voser said headwinds that continued to "erode the near term outlook" included weak industry refining margins and security issues in Nigeria but pointed to a strong flow of new projects and said Shell would increase the pace of asset sales.
FTSE 100 - Risers
Vodafone Group (VOD) 231.15p +2.96%
International Consolidated Airlines Group SA (CDI) (IAG) 354.30p +1.84%
Royal Dutch Shell 'B' (RDSB) 2,189.00p +1.37%
Persimmon (PSN) 1,280.00p +1.19%
Rio Tinto (RIO) 3,194.00p +1.14%
Schroders (SDR) 2,607.00p +1.09%
British Sky Broadcasting Group (BSY) 947.50p +1.07%
HSBC Holdings (HSBA) 688.20p +0.89%
BP (BP.) 486.95p +0.88%
Royal Dutch Shell 'A' (RDSA) 2,094.50p +0.87%
FTSE 100 - Fallers
Meggitt (MGGT) 509.50p -11.00%
Royal Bank of Scotland Group (RBS) 341.90p -6.99%
Randgold Resources Ltd. (RRS) 4,475.00p -3.56%
Antofagasta (ANTO) 831.50p -2.75%
Barclays (BARC) 258.05p -2.11%
Fresnillo (FRES) 956.50p -1.95%
British Land Co (BLND) 610.00p -1.93%
G4S (GFS) 257.00p -1.72%
Glencore Xstrata (GLEN) 334.20p -1.71%
Hargreaves Lansdown (HL.) 1,171.00p -1.60%