Please ensure Javascript is enabled for purposes of website accessibility

Why Fresnillo, Tullow Oil, and Randgold Resources Lagged the FTSE 100 Today

By Alan Oscroft - Apr 23, 2013 at 12:46PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Fresnillo, Tullow Oil, and Randgold Resources show weakness.

LONDON -- The FTSE 100 (INDEX: ^FTSE) rose an impressive 2% today to close at 6,406 points, boosted by expectations of further economic stimulus across the eurozone -- although it did take news of German private-sector shrinkage to raise such hopes. Will there be a further interest rate cut at the next meeting of the European Central bank? Some are now predicting exactly that.

Meanwhile, some of the index's constituents ran in the opposite direction. Here are three that lagged today.

Fresnillo (FRES 0.47%)
While it was a generally positive day for FTSE 100 shares, falls were led by gold and silver miner Fresnillo. Fresnillo shares fell 2.2% to 1,092 pence -- and they're down 42% since the start of the year as mining shares continue to suffer from weak commodities prices.

On top of general mining demand, the fall in gold prices to a two-year low didn't help -- nor did last week's quarterly production report, which revealed a 3.5% drop in gold production to 117,500 ounces.

Tullow (TLW 0.83%)
Tullow Oil shares faltered a little, dropping 0.9% to 1,037 pence after the firm reported a dry well. Its Priodontes-1 well, off the shore of French Guiana, has failed to find any oil or gas after being drilled to a depth of 6,318 meters. It will now be plugged and abandoned. The Stena Ice Max rig that was being used for it will now be moved to the firm's Cebus exploration well, which should be spudding in the next two weeks.

The Tullow share price is now down 17% since its April 2 month-high of 1,256 pence, and it's down about 30% over the past 12 months.

Randgold (LSE: RRS) (NASDAQ: GOLD)
Across the board today, it's mainly the mining sector that's being hit. And along with gold miners in general, Randgold Resources is down a bit, having dropped 0.8% to 4,831 pence. Falling precious-metal prices seem to have taken the shine off Randgold's recent announcement that its major Kibali gold project in the Democratic Republic of Congo is set to deliver its first gold this year.

After a sustained climb from last summer's lows of below 4,600 pence took Randgold shares to an October high of 7,891 pence, the price has since crashed back to a new 52-week low of 4,452 pence this month.

Finally, reliable dividends can more than compensate for the day-to-day ups and downs of share prices. So how about a company that's offering a 5.7% yield and could be set for some nice share-price appreciation, too? It's the subject of our brand-new report "The Motley Fool's Top Income Share For 2013," which you can get completely free of charge -- but it will only be available for a limited period, so click here to get your copy today.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tullow Oil plc Stock Quote
Tullow Oil plc
TLW
$54.80 (0.83%) $0.45
Fresnillo PLC Stock Quote
Fresnillo PLC
FRES
$804.20 (0.47%) $3.80

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.