Petra Plummets Amid Tanzania Doubts

Monday, 18th September: The FTSE started on a positive note after a fairly quiet weekend regarding North Korea as well as rising metal prices. All of the FTSE 350 sectors started off the day in green as well, except mining, which consists of the likes of BHP Billiton, Fresnillo, Glencore and others. Petra Diamonds was by far hit the worst in the mining sector after preliminary results for the full fiscal year of 2017 were released and revealed a 38% fall in pre-tax profit, and news concerning their Tanzanian mine was made known. Operations in the Tanzanian mine, also named the Williamson mine, were suspended for four days due to government investigations into the countries diamond sector. The Williamson mine is held 75% by Petra and 25% by the Tanzanian government. The mine has now reopened but discussions with the government are ongoing.

A deal between Qatar’s defence minister and BAE pushed the British defence group to the top of the FTSE 100, trading 2.9% higher at 614p in early hours of trading. The deal was signed off to confirm Qatar will be purchasing 24 Typhoon jets from BAE, which will more than likely stir mixed emotions amongst the other Gulf members, who earlier this year cut diplomatic and trade links with Qatar.

Ryanair have waved the white flag and admitted being at fault after cancelling flights to cope with pilot shortages, and ironically, plans to improve punctuality. Shares in the company were down by around 3% in the earlier hours of trading. Ryanair are more than likely going to be left with a hefty bill as well after they cough up compensation to customers, which could sum up to £20.0m, and this excludes the cost of lost fees, and subsistence costs such as food, drink and accommodation.

After opening around 0.52% higher, the FTSE 100 held on to most of its early gains mid day and was still up around 0.34% at 7239.67. The gains made today allowed the FTSE to reverse some of the damage which caused it to close at a four month low on Friday of 7215.50. The blue chip index managed to hold onto these gains until the end of the day and closed 0.52% higher at 7253.28.

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