UK stocks : FTSE 100 drops 0.2 pct

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Reuters: London, Feb 19 2013, 01:53 IST
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UK stock closing: Britain's top share index fell on Monday, with the mining sector hit by low commodity prices and a resurgence in industrial unrest.

However, the index remained above the key support level of 6,300, keeping it around five-year highs.

The mining sector was the main drag on the FTSE 100, losing 0.9 percent after copper fell to a three-week low. Volatile copper miner Kazakhmys was a top faller on the index, losing 2.8 percent.

Miners specialising in gold fared little better, with the commodity having hit a 6 month low last session. Fresnillo lost 0.7 percent in Monday's session.

"Base metal prices are not at the high levels we expected for the start of 2013, and that's hit miners. We don't see that much high demand from the euro zone, U.S. and Asia," Myrto Sokou, senior research analyst at Sucden Financial Private Clients, said.

Anglo American saw losses and volume pick up in afternoon trade after a clash at Anglo's Amplats platinum mine in a labour dispute.

Anglo American shed 2.8 percent, among the top FTSE fallers. On Friday, it had managed gains despite poor earnings, as investors had hoped it had put a torrid 2012 - in which production was marred by industrial disputes - behind it.

Miners had rallied since November on hopes of renewed demand from China as growth picked up after a period of political transition at the end of last year.

"Miners have done very well as a China play, and there's an element of unwind to that. I'm

... contd.

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