London close: Stocks erase gains despite Greek repayment, China rate cut

11th May 2015 16:40

After a positive start, UK stocks dropped into the red by the close on Monday despite positive news emanating from Greece, which has come good on its debt repayment to the International Monetary Fund (IMF).The FTSE 100 retreated 0.24% to 7,029.85 by the end of the session, having risen as high as 7,083.72 early on. The index was pulling back after a 2.3% surge on Friday following the Conservative victory in the general elections.Mining stocks were doing their best to keep the Footsie afloat for most of the day after top metals consumer China lowered interest rates for the third time in six months in an effort to avert a slowdown. The People's Bank of China lowered its benchmark lending and deposit rates by 25 basis points each, following weaker-than-expected trade and inflation figures released last week.However, markets fell in afternoon trade as investors shrugged off the news that Greece made a €754m repayment to the IMF ahead of its Tuesday deadline. The transaction came came ahead of Monday afternoon's meeting of Eurozone finance ministers."The repayment by Greece is good news for all involved but you wouldn't think it by looking at the markets' muted reaction," said IG analyst David Madden. "The move by Athens can hardly been seen as a victory [...] Today's repayment is by far the smallest that the nation must make within the next few months," he said.The Eurogroup convened to discuss a cash-for-reforms deal with Greece, though most analysts don't anticipate an agreement on releasing further bailout funds to be made.Closer to home, the Bank of England maintained its Bank Rate at 0.5% and the size of its asset purchase programme at £375bn at its policy meeting on Monday, as expected.Royal Mail, housebuilders and miners riseRoyal Mail topped the risers after rival postal firm Whistl revealed it has halted deliveries because private equity backer LDC had pulled out of funding to help expansion efforts.Property stocks extended Friday's gains, driven by the outcome of the general election. With the threat of Labour's mansion tax eliminated, hopes for planning permission were boosted, sending Taylor Wimpey, Barratt Developments and Persimmon higher.The election results were also lifting Centrica after Deutsche Bank upgraded the British Gas owner to 'hold', saying that Labour's intended energy-price cap was no longer a threat.Mining stocks were buoyed by the interest rate cut in top metals consumer China, with Anglo American, BHP Billiton, Glencore and Rio Tinto all making decent gains.However, platinum miner Lonmin dipped after revealing plans to cut up to 3,500 jobs on predictions that metal prices will remain low for at least the short term.Financials were mostly lower, including St James's Place, HSBC and Aberdeen, with the latter pulled lower by a Societe Generale downgrade to 'hold'.Meanwhile, stock in Sage gained ground on the heels of a price target upgrade out of analysts at Goldman Sachs. Market MoverstechMARK 3,266.00 -0.10%FTSE 100 7,029.85 -0.24%FTSE 250 17,870.64 -0.36%FTSE 100 - RisersRoyal Mail (RMG) 497.60p +3.90%Taylor Wimpey (TW.) 180.40p +2.67%3i Group (III) 515.50p +2.59%Sage Group (SGE) 556.00p +2.30%Hikma Pharmaceuticals (HIK) 2,054.00p +2.19%Weir Group (WEIR) 1,917.00p +1.91%TUI AG Reg Shs (DI) (TUI) 1,270.00p +1.84%Experian (EXPN) 1,177.00p +1.82%Hargreaves Lansdown (HL.) 1,235.00p +1.81%Schroders (SDR) 3,377.00p +1.72%FTSE 100 - FallersCRH (CRH) 1,837.00p -2.86%St James's Place (STJ) 940.50p -2.29%Mondi (MNDI) 1,322.00p -1.86%Associated British Foods (ABF) 2,879.00p -1.67%Shire Plc (SHP) 5,245.00p -1.59%Smiths Group (SMIN) 1,145.00p -1.46%easyJet (EZJ) 1,833.00p -1.45%HSBC Holdings (HSBA) 632.30p -1.37%Unilever (ULVR) 2,855.00p -1.35%Randgold Resources Ltd. (RRS) 4,701.00p -1.32%FTSE 250 - RisersNMC Health (NMC) 860.00p +5.26%Home Retail Group (HOME) 172.90p +5.17%Indivior (INDV) 239.80p +4.81%AO World (AO.) 179.90p +3.99%Man Group (EMG) 182.60p +2.76%FirstGroup (FGP) 112.20p +2.75%Fisher (James) & Sons (FSJ) 1,295.00p +2.70%Allied Minds (ALM) 631.50p +2.52%Vedanta Resources (VED) 675.00p +2.51%SIG (SHI) 206.30p +2.48%FTSE 250 - FallersDiploma (DPLM) 792.00p -6.49%Spirax-Sarco Engineering (SPX) 3,329.00p -6.01%Smith (DS) (SMDS) 357.50p -3.92%Hunting (HTG) 576.00p -3.36%Inchcape (INCH) 847.50p -3.03%Zoopla Property Group (WI) (ZPLA) 225.00p -3.02%Beazley (BEZ) 283.80p -2.27%Synergy Health (SYR) 2,201.00p -2.22%Victrex plc (VCT) 1,994.00p -2.16%Workspace Group (WKP) 848.50p -2.08%