FTSE 100 movers: RSA dives after firm unveils dividend cut

20th Feb 2013 15:13

Full-year results from RSA Insurance were largely in line with estimates, with extreme wet weather in the UK and earthquakes in Italy contributing to a 5.9 per cent fall in operating profit. However, shares tanked after the firm unveiled a 33 per cent cut in its annual dividend due to the likelihood for a prolonged period of low bond yields. BHP Billiton was also lower after announcing a new CEO as its half-year profits dropped 58% on the back of weak commodity prices and a strong Australian dollar. The mining sector was broadly lower, tracking the price of gold and copper lower. The biggest hit were Fresnillo, Antofagasta, Kazakhmys, Xstrata, Rio Tinto, Glencore and Polymetal. Michael Hewson, Senior Market Analyst at CMC Markets UK, said: "Gold prices have slid back sharply today, touching their lowest levels in six months as equity markets continue their recent moves higher. "With technical signals also pointing to further declines the direction of travel appears to be for a lower gold price, towards the December 2011 lows at $1,525. A lot of noise has been made with respect to the "death cross" across the financial and social media today and in some markets it is a very accurate indicator."Meanwhile, Rexam, the consumer packaging group, was a high riser after increasing its dividend by 6.0%. The increase came despite it saying that pre-tax profits fell 11.9% in 2012. Royal Bank of Scotland got a boost after Credit Suisse increased its target price from 250p to 260p, keeping an underperform rating. FTSE 100 - RisersRexam (REX) 501.50p +5.20%Melrose Industries (MRO) 249.90p +2.97%Royal Bank of Scotland Group (RBS) 352.90p +2.26%Schroders (SDR) 2,017.00p +2.13%British American Tobacco (BATS) 3,461.50p +2.11%IMI (IMI) 1,196.00p +1.87%Tate & Lyle (TATE) 814.00p +1.81%Sage Group (SGE) 343.00p +1.72%BG Group (BG.) 1,166.50p +1.70%Burberry Group (BRBY) 1,403.00p +1.67%FTSE 100 - FallersRSA Insurance Group (RSA) 118.00p -13.43%Aviva (AV.) 352.60p -4.50%Fresnillo (FRES) 1,503.00p -2.84%Antofagasta (ANTO) 1,071.00p -2.19%BHP Billiton (BLT) 2,187.50p -2.17%Kazakhmys (KAZ) 709.50p -2.00%Xstrata (XTA) 1,156.50p -1.78%Rio Tinto (RIO) 3,649.00p -1.74%Glencore International (GLEN) 385.25p -1.73%Polymetal International (POLY) 992.50p -1.44%