FTSE ends the day down
The FTSE 100 Index ended today firmly in negative territory despite an upbeat start to the session in New York.
The Footsie’s midday losses deepened in afternoon trading to leave it 33.6 points off at 4822 by the close.
The Dow Jones Industrial Average got off to a positive start after digger maker Caterpillar and chip maker Intel turned in better-than-expected earnings.
However, fresh fears about US interest rate rises sparked by higher-than-expected retail sales limited the gains. The Dow stood 32 points ahead at 10159 shortly after London’s close.
News that the Bank of England voted by 7-2 in favour of keeping rates on hold this month, due to a lack of information about consumer spending prospects, failed to lift the City.
A raft of companies going ex-dividend took their toll on equities in London.
Broadcaster ITV and insurer Prudential were the heaviest blue-chip fallers as they featured in a long list of firms whose shareholders are no longer entitled to the latest dividend payouts.
ITV was second in the Footsie losers, weakening 3% or 4.25p to 121.75p, while the Pru topped the list with an 18p decline to 485p. Other companies going ex-dividend included Tesco, weakening 9p to 314.25p.
Investors failed to warm to news from the Pru that it was on course to meet its UK sales targets.
Traders also gave its rivals in the insurance market the cold shoulder, including Norwich Union owner Aviva, which weakened 14p to 601.5p.
Oil stocks failed to rally as crude prices rose ahead of data showing the level of inventories in the US in the run-up to the summer driving season.
BP lost 1p to 531.5p and Shell retreated 3.5p to 468.5p as the price of a barrel of Brent crude for June delivery remained around 53.5 US dollars.
Second-tier rival Cairn Energy advanced 2% or 27p to 1179p as investors continued to warm to yesterday’s full-year results and its drilling progress in the Indian state of Rajasthan.
Updates from outside of the top flight drew a negative response with housebuilder McCarthy & Stone down 44p at 589p after warning it was “slightly more cautious” about prospects for its second half.
And a warning from packaging specialist DS Smith that it may have to push up prices to counter higher energy and raw material costs drew a lacklustre response from the market, pushing shares down 4p to 153p.
Shares in IT group Computacenter tumbled nearly 10% or 26p to 264p after it warned of a substantial drop in profits this year after a tough start, with group sales down 10% so far.
The day’s biggest winners were InterContinental Hotels, up 13.5p to 633p, Cable & Wireless lifting 1.5p to 124.75p, Gallaher adding 7.5p to 788p and BAT gaining 8p to 950p.
Biggest losers included Prudential down 18p to 485p, ITV off 4.25p to 121.75p, Man Group falling 37p to 1282p and Tesco retreating 9p to 314.25p.
