Footsie continues to slide
Cable & Wireless topped off a torrid week on the London market with news that trading in the UK had deteriorated.
A 14% slump by the telecoms giant’s shares helped the FTSE 100 Index add to the heavy losses of the previous two sessions, closing 10.1 points lower at 5362.3.
Initial signs of a recovery by the Footsie proved short-lived, meaning the index plunged a total of more than 130 points from its high point on Monday.
The continued downbeat mood came despite New York’s Dow Jones Industrial Average lifting 30 points by the close of trading on this side of the Atlantic.
In London, C&W shares plunged 20p to 121.75p as analysts reacted to guidance that sales at the higher margin retail division had been overtaken by the company’s carrier services unit for the first time.
Other stocks proving a drag on the market included online poker firm PartyGaming, which fell 5.5p to 80p, its lowest level since floating on the stock market this summer.
Mining stocks also continued their difficult week with BHP Billiton down 29.5p to 825.5p, Antofagasta off 33p at 1464p and Rio Tinto 36p lower at 2234p.
The retail sector was doing its best to lift the mood after Boots revealed it had raised a better-than-expected £1.93 billion from the sale of its business making Nurofen and Strepsils.
The news that Reckitt Benckiser had bought Boots Healthcare International sent the consumer products group towards the top of the blue-chip risers board, up 32p to 1740p, and was followed by Boots, adding 11.5p to 633.5p.
Sainsbury’s was also in the black after posting a third consecutive quarter of like-for-like sales growth, lifting its stock 1% or 3.5p to 283.5p.
However, British Airways outperformed them all, cheering 2% or 6.25p to 316.25p after a positive note from Credit Suisse First Boston.
Back in the retail sector, the upbeat mood rubbed off on a number of high street names, with Dixons owner DSG International lifting 1.5p to 143.25p, clothing retailer Next advancing 11p to 1353p and Argos owner GUS up 7.5p at 849.5p.
Marks & Spencer failed to share in the improvement as the recent recovery at the high street chain ended with a 2p decline to 375.25p. It is due to post a trading statement on Tuesday.
Second tier supermarket group Somerfield was out of favour after a potential bidder ended interest dating back six months. London & Regional Properties - owned by brothers Ian and Richard Livingstone – said it had decided not to proceed with an offer for Somerfield, sending shares down 5p to 185p as only one party was left in the frame.
The highest Footsie risers today were British Airways up 6.25p to 316.25p, Reckitt Benckiser adding 32p to 1740p, Boots up 11.5p to 633.5p and Scottish Power lifting 9p to 587p.
The heaviest fallers were Cable & Wireless down 20p to 121.75p, PartyGaming off 5.5p to 80p, BHP Billiton down 29.5p to 825.5p and Rentokil Initial off 5.25p to 158p.
