Miners, tobacco and support services

The headline index retreated into negative territory tracking downward moves on Wall Street and in Asia overnight, and as oil prices continued to hover around the $30 mark.

“Rio Tinto’s full year results have heaped more gloom on to the beleaguered mining sector,” says AJ Bell Investment Director Russ Mould.

“Rio Tinto’s (LSE:RIO) slump to a pre-tax loss of $726m from a profit of $9.5bn underscored the impact that plunging commodity prices and the slowdown in China are having. But the real worry for investors was the group’s warning that it was no longer appropriate to maintain a progressive dividend policy due to uncertainty in global market conditions. Rio Tinto has held its full year dividend this time but clearly the writing is on the wall about future pay-outs.

“Tobacco group Imperial Brands (LSE:IMB) made light gains in early trading after reporting a rise in first quarter revenues despite volume declines. The group has jettisoned the word ‘tobacco’ from its name and has seen revenues boosted by the increase in its e-cigarette business.

“International sales, marketing, distribution and business support services group DCC (LSE:DCC) cheered investors with a bullish third quarter update. The group’s operating profits were very significantly up on a year ago with strong growth in operating profit in its energy, healthcare and environmental businesses.”

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