FTSE continues downward
The London market added to yesterday’s heavy losses today despite a string of corporate updates cheering investors.
Aerospace and defence group BAE Systems and leisure group Hilton were among the blue-chip firms trying to drive the Footsie forward, with shares in both more than 1% higher.
But by mid-morning, the FTSE 100 Index was 0.8 points lower at 4987.7, adding to yesterday’s losses of 44.4 points that sent it back below the key 5000 barrier.
The flat progress contrasted with trading across the Atlantic last night, where the Dow Jones Industrial Average lifted more than 60 points. Analysts were tipping the index to open lower ahead of the latest oil inventory figures.
Cold weather has forced the cost of a barrel of crude oil above the $50 in the last couple of days, hitting global markets. Today the cost of a barrel remained above $51 in New York.
In London, Hilton’s shares rose by 6.25p to 318.25p after it reported a 41% hike in annual profits to £383.1m (€551.5m) and unveiled plans to return cash to shareholders through hotel sales.
BAE Systems also featured on the Footsie climbers board after profits before interest and one-off costs came in at £1.01bn (€1.5bn), compared with £980m (€1.4bn) a year earlier. Shares advanced 3.5p to 253.5p.
But despite earlier gains, energy group Centrica slipped back after announcing a 16% rise in operating profits to £1.23bn (€1.8bn) on the back of higher household bills at British Gas and a jump in gas consumption. Shares fell 4.25p to 236.75p.
The financial sector was also in the doldrums, with Royal and Sun Alliance a penny lower at 83.5p after a broker downgrade.
A number of other stocks in the sector were in the red, including Royal Bank of Scotland despite posting record profits of £8.1bn (€11.7bn) and beating forecasts. The stock weakened 2p to 1809p.
