FTSE hits another low
Catering group Compass helped drag the FTSE 100 Index to another two-month low today as the market failed to hold on to earlier gains.
The London market slipped into reverse gear after signs of more gloom across the Atlantic, where the Dow Jones Industrial Average added to the previous session’s heavy losses.
Despite encouraging progress throughout the day, the FTSE 100 Index ended the session 6.3 points lower at 4894.4.
A stronger-than-expected manufacturing survey in the US prompted speculation of a robust rise in tomorrow’s payroll data – which could spark concerns that the Federal Reserve may raise US rates again. The Dow Jones stood around 20 points lower by London’s close.
Catering group Compass was the heaviest Footsie faller as it warned of a blow to profits after its Middle East division fed more peacekeepers rather than active military personnel. The stock lost 5% of its value, off 12.75p to 241.5p.
It was followed by Smith & Nephew after it emerged the group is facing an industry-wide inquiry into relationships between surgeons and the makers of replacement hips and knees.
Shares slipped 24.5p to 497.5p after S&N revealed it was among firms to have received a subpoena from the US attorney in Newark, New Jersey.
National Grid Transco failed to benefit from its announcement that it is to invest £355m (€516.9m) to expand energy capacity as part of Britain’s preparations to become a significant importer of natural gas. Investors initially responded well but shares later slipped 3p to 490.25p.
British Gas owner Centrica – one of three firms that will benefit from the additional capacity – also weakened 2p to 230.75p.
In contrast, shares in Shire Pharmaceuticals soared to the top of the Footsie risers board after it said US sales of its key hyperactivity drug had steadied. The stock advanced nearly 8% or 42.5p to 604.5p.
A rise in the cost of a barrel of US light crude oil back above the $55 level helped BP end the day 1.5p higher at 548.5p, clawing back some of yesterday’s significant losses. However, rival Shell fell a penny to 475p.
Among companies reporting today, FTSE 250 stock Mothercare was 4% higher – up 11.5p at 276.5p – after saying it expected annual results to meet hopes as sales picked up after a Christmas downturn.
Tour operator MyTravel also advanced 6% or 0.35p to 5.85p after it said bookings had been encouraging for the summer season.
Outdoor advertising group Maiden was unchanged at 240p after it said its business had been left in limbo by the wait for a general election date to be announced.
The highest Footsie risers were Shire Pharmaceuticals up 42.5p to 604.5p, Xstrata rising 28p to 1010p, Antofagasta up 23p to 1276p and BG rising 6.5p to 411.25p.
The heaviest fallers were Compass down 12.75p to 241.5p, Smith & Nephew off 24.5p to 497.5p, 3i down 13.5p to 671.5p and Tesco off 4.5p to 316.5p.
