Profit-takers move in on US concerns

SHARES in Scotgold received a fillip yesterday after the miner was given permission to dig in the Loch Lomond & the Trossachs National Park.

The gold miner, which is also listed on the Australian stock exchange, received the unanimous backing of the national park’s board, which had turned down the firm’s previous application.

Scotgold closed up 7.3 per cent or 0.5p at 7.38p, having hit 8.25p earlier in the session.

The wider FTSE 100 index closed down 22.52 points or 0.4 per cent at 5,525.54. It fell sharply when the US markets opened, but then clawed back some of its losses.

US consumer confidence unexpectedly dropped in October to its lowest level in two-and-a-half years, again raising concerns over the health of the world’s biggest economy.

That led to profit-taking in riskier assets such as mining and banking stocks, which have had a minor recovery over the past month in London.

Investors were also spooked by comments from German chancellor Angela Merkel, who said she opposed a phrase in a draft conclusion for today’s European Union summit that calls for the European Central Bank to continue buying bonds in the secondary market. Angus Campbell, head of sales at Capital Spreads, said: “The job facing European leaders is no small one and can be likened to climbing Everest without crampons. In other words, a near-impossible task to recapitalise Europe’s banks and prevent a default situation within the sort of timescale that is rumoured will be announced.”

The pound was up against the euro at €1.15 after the single currency was hit by the latest uncertainty about the rescue deal. But sterling was down at $1.60 against the dollar.

Barclays was among the biggest losers, off 4 per cent or 6.7p at 180p, after being hit by the uncertainty. HSBC was down 5p at 525p and Lloyds Banking Group was off 0.4p at 35p.

Meanwhile, oil giant BP was the biggest riser in the top flight after profits nearly trebled to just over $5.1 billion (£3.2bn) in the three months to 30 September and chief executive Bob Dudley hailed the progress of its turnaround strategy. Shares were up 4 per cent or 19.1p to 457.2p.

Oil and gas producer BG Group posted a 25 per cent increase in profits for the third quarter on high energy prices. The company said profits for the three months to September were $1.1bn, compared with $849 million a year earlier. Shares were 51p higher at 1,378p.

Among the Scottish stocks, milk producer Robert Wiseman Dairies edged up 2.75p to 287p after analysts at Numis Securities upgraded the stock from “hold” to “add” ahead of half-year results on 14 November.

Glasgow-based temporary power supplier Aggreko dipped 4p to 1,710p despite analysts at Peel Hunt increasing their full-year profits forecasts following Friday’s third-quarter update.

Alliance Trust, the Dundee-based investment manager, continued its share buy-back scheme by snapping up a further 740,000 shares at 337p each. The stock fell 0.1p to 336.9p.

Aberdeen-based oil explorer Xcite Energy drew down a further £3.2m in equity funding from US investor Yorkville. Shares dipped 0.75p to 124.75p.