Britain's top share index edged lower on Monday, with mining company BHP Billiton falling on the prospect of a hefty fine in Brazil and Aberdeen Asset Management slipping after it reported outflows from its emerging market funds.
Shares in BHP Billiton led the losses in the FTSE 100, falling 5 percent. Brazil said it would seek 20 billion reais ($5.24 billion) in damages from BHP and Vale , the owners of the Samarco iron ore miner, after a dam owned by Samarco burst, killing at least 13 people and dumping millions of tons of mud and waste in the Rio Doce valley.
Aberdeen Asset Management fell 4 percent after it reported a 12.5 percent fall in its full-year assets under management, after nervous investors pulled money out of its emerging market equity funds.
"Our current assumption for September 2016 is for continued outflows ... given the comment in the outlook statement that management believe the current weakness (in emerging markets) may have some way to run," Shore Capital analyst Paul McGinnis said.
The FTSE 100 index was down 0.2 percent at 6,363.55 points by 0914 GMT, extending the previous session's losses.
Mining shares also came under pressure due to lingering concerns about the pace of economic growth in China, the world's top metals consumer.
The UK mining index fell 2.7 percent, with shares in Anglo American, Antofagasta, Glencore and Rio Tinto dropping 1.8 to 3.5 percent. (Reuters)
Source: www.businessworld.ie
