Miners fall on Chinese concerns while Pharmaceutical deal activities raise FTSE


Published Date : Apr 22, 2014


After the Easter break, the number of deals in the pharmaceutical sector have aggravated the UK market.

After reports of a $100bn takeoverapproach from Pfizer, a 7% rise is seen in AstraZeneca shares.Also, a 4% rise in GlaxoSmithkline (the complicated asset swap with Novartis) has helped lift the FTSE 100.

Shire is the rumored candidate that is sharply budding up in the market adding 125p or 4% to £30.50. However, on the contraryBabcock International has dropped 9p to £12.07. This has happened right after a sell note from Liberumwhere its target price was from 1200p to 1065p to demonstrate some shares ex-rights.

The total FTSE 100 is now up to 58.41 points at 6683.66 along with three Pharma companies accounting for 32points.
 
Wall Street has contributed its opinion although not a lot of guidance was seen from Asia. A marketing strategist at ETX Capital, named IshaqSiddiqi said Asian markets held mixed reviews in the overall share of the market. Although they were supported by a positive momentum in Wall Street, the market was still facinggeopolitical tensions altogether; especially with rising worries about China getting ahead in the week’s manufacturing PMIs.

Many market participants are apprehensive that policymakers in China are contentedwith the growth seen in the region that could stimulate a response by the People’s Bank of China. Similarly, there are certain apprehensions in Europe as well regarding the crisis in Ukraine and some high profile deals in the Pharma sector.

All such concerns about the economy in China have pushed mining shares to all time low. Rio Tinto has lost 38.5p to £32.50, Anglo American is down 22.5p at 1524.5p, and Mexican silver minerFresnillo has fallen 12p to 856p.