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FTSE 100 closes near 100 points down; supermarkets hit

Published: 02:54 24 Sep 2014 AEST

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FTSE100 plunged almost 100 points on Tuesday to end the day at 6,676, with supermarkets taking a pounding.

The biggest loser was Sainsbuiry (LON:SBRY), down 5.38%, but Tesco (LON:TSCO), never far from then headlines in the last two days, ended down 5.54%.

On the winning front, big cap miners did well with Rio Tinto the biggest gainer in London, but still only up 1.62%.

Sainsbury's plunged after Kantar figures showed sales dropped 1.8% in the 12 weeks to September 14.

Tesco (LON:TSCO) was under the cosh again after yesterday's accounting hole shocker, while Barclays (LON:BARC)  shed 1.04% after it emerged the City regulator is to throw another massive fine at the banking giant.

This time, the penalty is for failing to ensure adequate protection for clients’ funds.

The figure is believed to be in the region of £38mln - making it a record punishment for this kind of asset breach from the  FCA.

Tesco woes were added to as data showed another drop in the grocer's sales and market share, according to latest Kantar stats.

Of the risers in the small caps, Richland Resources (LON:RLD) surged over 13% as it expects to start sapphire production from Australia within the next six months, though prospects for its troubled tanzanite business remain unclear.

The miner’s battle against illegal mining on its tanzanite licences in Mozambique meant interim revenues almost halved to US$3.9mln, while net losses doubled to US$1.2mln.  Cash at the half year was A$1.2mln.

Richland said even in the areas it had recovered from illegal occupation the extent of the damage to the recovered shafts were more significant than expected and rehabilitation will take longer than expected.

Other notable risers, included Amur Minerals (LON:AMC), which rose 22.75% and Tower Resources (LON:TRP) added 6.45%.

Sound Oil (LON:SOU) was lifted 4% as it signed ‘non-binding’ terms on a €7mln reserve-based lending facility to fund its second well on Nervesa discovery, onshore Italy.

The proposed deal is being tabled by Greenberry SA, an affiliate of the Continental Investment, Sound’s cornerstone investor with almost 15.5% of the AIM listed gas producer and explorer.

Sound says the loan, which carries a 5% annual coupon, fully funds Nervesa going forward, allows it to retain its cash balances and offers a more economic and less complex alternative to a proposed farm-in deal that was also being mulled.

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