Why Polymetal International, Fresnillo, and Eurasian Natural Resources Should Lag the FTSE 100 Today
LONDON -- The FTSE 100 has seen little change this morning, down 0.15% to 6,713 as of 8:45 a.m. EDT, but it remains close to the its 10-year high of 6,732.4, set in June 2007.
So which companies are holding back the indexes today? Here are three whose share prices are falling and look set to lag the wider market.
London-listed gold and silver producer Polymetal International is down 4.3%, continuing its fall since the turn of the year, when it was trading for as much as 1,218 pence -- today it stands at 606 pence.
Linked with the price of gold, which has been plummeting recently following the record prices in recent years, the likes of Polymetal are looking to cut costs ahead of further drops in the price of the precious metal.
Miners are not in fashion, and especially not gold and silver producers. Fresnillo isn't faring too well, either: Its shares are down 2.7% at the time of writing.
Many of the reasons for Polymetal's underperformance apply also to Fresnillo, which relies on the price of gold faring well. The beginning of the year saw it trade at about 1,810 pence, while it can now be picked up for 1,040 pence.
Eurasian Natural Resources
Completing the set, shares in Eurasian Natural Resources have fallen 2.7% in early trade. This follows the announcement that a rejected consortium bid, announced last week, valued the company at 260 pence (comprising 175 pence in cash and 0.231 of an existing Kazakhmys share for each ENRC share).
The consortium consisted of Kazakhstan's government and ENRC's co-founders, and a successful bid would have cost about $4.8 billion. The consortium now has until June 3 to "either announce a firm intention to make an offer for the Company in accordance with the Code or announce that they do not intend to make an offer."
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The article Why Polymetal International, Fresnillo, and Eurasian Natural Resources Should Lag the FTSE 100 Today originally appeared on Fool.com.Sam Robson has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.