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FTSE 100 sees red as UK inflation read fails to lift mood

Last updated: 23:25 12 Nov 2013 AEDT, First published: 00:25 13 Nov 2013 AEDT

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Britain's blue chips were in the red on Tuesday at the midday point with the freshly published inflation data seemingly making little impact on sentiment.

Figures from the Office of National Statistics (ONS) showed CPI (consumer price inflation) had fallen to 2.2% last month.

Economists had predicted a less sharp drop to 2.5%.

Ahead of the start of US trading, which showed modest gains at the close yesterday, FTSE 100 was down 12 points at 6,716.

Financials and banking stocks were weighing, with Aberdeen Asset Management the biggest loser, down 4.28%.

The biggest gainer was diversified buildings group CRH (LON:CRH) which rose 3.21%, while as it reported a 2% rise in like-for-like sales in Q3.

Also in favour today was British Sky Broadcasting (LON: BSY), which was up 1.99%.

In the junior market, the downbeat tone was also evident, with the FTSE AIM-All share down 0.13 to 810.81, while the FTSE AIM 100 lost 2.59 to 3660.39.

Andor Technology (LON:AND) was the biggest gainer on FTSE AIM 100, up over 22%, as it emerged it was willing to negotiate takeover proposals from Oxford Instruments.

Oxford Instruments revealed it has made an indicative 500p per share offer, which values Andor at 160mln, and is a 25% premium to Monday’s closing price.

Andor said the announcement, which accompanied Oxford Instruments’ half yearly results, was “premature and unhelpful”, but it is still open to the possibility of a deal.

In small cap world, Kalimantan Gold (LON:KLG) was a standout, its shares rose 8.70% after a bullish update on its KSK copper project in Indonesia.

Several new possible targets have been identified at the firm's project following an airborne survey.

Also lifting off today was low-cost Africa focused carrier Fastjet, which said today it had added more flights to its newly launched Dar es Salaam to Mbeya route in Tanzania after high demand meant some services sold out.

Fastjet launched the service at the start of November since when the load factor, or how full its flights are, has averaged 97.5% with some flights completely full.

Tertiary Minerals (LON:TYM) also gained nearly 4%.

The firm said today engineer Richard Clemmey has been promoted as the new managing director, and also revealed it will close an equity facility with Yorkville Advisors’ YA Global Master fund, after an institutional investor agreed to buy shares.

Clemmey’s appointment will allow the executive chairman Patrick Cheetham more time to focus on strategic and corporate development.

Coal was in focus today with Atlantic Coal (LON:ATC), up 13.33%, and Beacon Hill Resources (LON:BHR), up 8.20%.

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