FTSE 100 movers: Aberdeen drops as market volatility continues

11th Jun 2013 14:25

Financial and mining stocks bore the brunt of the sell-off on equity indices on Tuesday with Aberdeen Asset Management leading the way lower as it continued to be hit by the wider market volatility, particularly due to the company's large exposure to the emerging markets.Matt Basi, the Head of UK Sales Trading at CMC Markets, said that "equity-price weakness is magnified in the fund manager and the stock continues its steep descent from the recent highs". After strong gains since the start of the year, the stock has pulled back sharply over the last two weeks and now stands over 20% lower than its 52-week high reached in late May. Other financials, including Old Mutual and Prudential, were also falling heavily with analysts citing their high-dividend characteristics which tend to become less attractive when government bond yields rise - 10-year bond yields in the States are currently trading at levels not seen in over a year (around 2.25%) as speculation that the Federal Reserve will begin to scale back asset purchases continues to increase.Lloyds was down after The Times said that contractors at the bank's PPI complaint handling unit were "taught how to play the system to the detriment of clients". Part-nationalised peer RBS was also lower.Mining stocks were also weighing heavily on the FTSE 100 today as metals prices fell across the board. Fresnillo, Anglo American and Glencore Xstrata were registering steep losses. Russian mining peers Polymetal and EVRAZ were also lower on the news that they will be exiting the FTSE 100 index this week following some sharp falls so far this year.FTSE 100 - RiserseasyJet (EZJ) 1,233.00p +0.57%Royal Dutch Shell 'B' (RDSB) 2,197.00p +0.16%FTSE 100 - FallersAberdeen Asset Management (ADN) 381.70p -7.82%Fresnillo (FRES) 1,055.00p -5.64%Polymetal International (POLY) 608.50p -5.51%Evraz (EVR) 118.30p -5.06%Burberry Group (BRBY) 1,358.00p -4.84%Old Mutual (OML) 183.00p -4.74%Glencore Xstrata (GLEN) 299.90p -4.58%Anglo American (AAL) 1,361.00p -4.26%Prudential (PRU) 1,050.00p -4.20%Schroders (SDR) 2,154.00p -4.18%