FTSE 100 movers: Miners hit by broker caution

18th May 2009 11:13

The mining sector is down 11% over the last week, adding weight to the growing number of voices suggesting that the sector's revival has been premature.US bank Citigroup has been reviewing the sector and is of the opinion that any good news likely to emerge in the next six months from miners has already been priced in.Stockbroker Exane BNP Paribas has also been sizing up the options open to Rio Tinto and their effect on the share price.The broker reckons that a veto from the Australian authorities, which would probably trigger a rights issue, would put Rio Tinto's share price "under significant pressure."The broker has reduced its rating on the stock from "outperform" to "neutral". It has revised its target price to £28, deeming a revised bid from BHP Billiton as possible, but unlikely.Lloyds Banking has rallied after Sir Victor Blank confirmed that he is planning to step down as chairman of the group by the AGM in 2010.It will also launch its previously announced placing and open offer on 20 May. The proceeds will be used to redeem the £4bn of preference shares held by the Treasury. In a change to the terms previously indicated, existing Lloyds shareholders who decline to take up their open offer entitlement will now receive a share of any profits from the sale of unsubscribed shares. FTSE 100 - RisersThomas Cook Group (TCG) 245.75p +9.83%Hammerson (HMSO) 293.50p +5.29%Lloyds Banking Group (LLOY) 93.90p +5.27%Standard Chartered (STAN) 1,236.00p +5.19%Home Retail Group (HOME) 250.50p +4.59%Vedanta Resources (VED) 1,375.00p +4.48%British Airways (BAY) 161.50p +4.46%Autonomy Corporation (AU.) 1,437.00p +4.43%FTSE 100 - FallersFresnillo (FRES) 595.00p -3.80%Rio Tinto (RIO) 2,575.00p -3.34%International Power (IPR) 266.50p -3.00%Randgold Resources (RRS) 3,893.00p -2.94%Xstrata (XTA) 599.00p -2.68%Lonmin (LMI) 1,142.00p -2.48%Petrofac Ltd (PFC) 591.00p -1.83%Cobham (COB) 190.30p -1.50%