FTSE falls back under 5000 barrier
Banks and betting firms dragged the London market into the red today as traders failed to warm to the latest batch of corporate news.
William Hill and HBOS were among the fallers that contributed to the FTSE 100 Index slipping 7.7 points to 4992.8, eroding yesterday’s gains that took it through the 5000 barrier.
Despite encouraging profits rises from both companies, concerns at other aspects of the results forced traders to turn away.
And a 30-point rise by the Dow Jones Industrial Average by the end of trading in London was not enough to inject momentum into the Footsie.
In London, HBOS lost 1% of its value, down 10.5p to 836.5p, despite delivering better-than-expected results and saying it had doubled profits since its creation from the merger of Halifax and Bank of Scotland in 2001.
Analysts cited concern over the level of bad debts at its retail arm for the share price fall.
Lloyds TSB, which will post annual results on Friday, fell almost 1% or 4.5p to 490.75p while Barclays was 8.5p lower at 566p.
Insurer Prudential also slipped 1% in the wake of its results, but recovered as the session wore on to stand 1.75p higher at 486.25p. It improved annual profits by 39% and set out its expectations for a further strong rise in sales growth in the UK this year.
Gambling groups Hilton and William Hill were at the top of the Footsie fallers board after the latter said it was putting thoughts of expanding into casinos on the back burner.
William Hill shares fell 18p to 597p, even though profits rose 16% and the company promised greater returns for shareholders. Hilton was 12p lower at 304.25p.
The biggest Footsie risers today were Man Group up 51p to 1405p, Rentokil Initial rising 2.5p to 162.25p, Sainsbury up 3.75p to 291p and Vodafone rising 1.75p to 140p.
The heaviest fallers were Hilton off 12p to 304.25p, William Hill down 18p to 597p, Gallaher off 21p to 769p and Centrica falling 6p to 235p.
