London shares closed steady on Friday as gains in Rolls-Royce and International Consolidated Airlines helped offset gloom about the economic outlook for the United States and the eurozone.
The FTSE 100 index of top companies shed 6.37 points or 0.11 percent to close at 5,769.68.
“Global markets traded lower today as bears roamed the markets and preyed on the mining and banking sectors which have been perceived to be particularly risky by investors given the impending US fiscal cliff as well as uncertainties regarding the pace of the global growth,” says Shavaz Dhalla, a trader at Spreadex.
“Although the markets have been gifted with positive industrial production data from China today, one would have assumed that this would have been enough of an incentive for investors to dive back into risk-on assets.
“However, investors have clearly decided that given all the factors affecting the global economic climate at present, the risk is just too great to enter into any substantive long positions,” Dhalia said.
Rolls-Royce climbed 1.86 percent to 877 pence as the aircraft engine maker unveiled a management statement.
“Trading is consistent with the guidance for the group provided at our half-year results in July,” the company said, highlighting recent big orders to supply engines for Singapore Airlines planes and US Navy hovercraft.
International Consolidated Airlines added 1.55 percent to 170.60 pence in the wake of news that Spain-focussed subsidiary Iberia plans to shed 4,500 jobs.
Iberia “is unprofitable in all its markets. We have to take tough decisions now to save the company and return it to profitability,” said Iberia chief executive Rafael Sanchez-Lozano.
Lonmin edged up 0.55 percent after the controversial miner attracted investor interest by rejecting an offer from shareholder Xtrata which would have given the Swiss-based investor control of the company.
South African police in September killed 34 striking workers at Lonmin’s Rustenberg platinum mine. The Lonmin workers were eventually granted wage increases of between 8-22 percent.
G4S sank another 2.24 percent to 253.40 pence after the security company lost its government contract to run the Wolds prison, on top of its failure to provide sufficient staff numbers to this year’s London Olympics.
Other losers included troubled bank Barclays, down 2.73 percent at 230.15 pence and state-rescued rival Royal Bank of Scotland, off 1.57 percent at 270.10 pence.
On the currency markets, sterling weakened to $1.5914 at 5:33 pm from $1.5974 on Thursday night and eased to 1.2509 euros from 1.2539 euros a day earlier.
London shares close steady on R-R, IAG gains
