Blue-chips send FTSE plunging
The London market plunged into the red today as a string of blue-chip stocks went ex-dividend, denying new investors a share of their latest payments.
Only a handful of stocks moved forward as the FTSE 100 Index continued its retreat from highs of around 5900 earlier in the week to sink back below 5800.
Among those companies to go ex-dividend were heavyweights such as Anglo American, Lloyds TSB and Royal Bank of Scotland, sending the Footsie down 58.6 points to 5798.8 by mid-morning.
It took the shine off gains by ITV – up 2% or 2p to 112.75p – after the broadcaster posted a 42% hike in profits to £460 million despite a decline in advertising revenues at its flagship ITV1 channel.
Pharmaceuticals companies were also on the front foot, with AstraZeneca up 43p to 2687p, GlaxoSmithKline 19p stronger at 1526p and Shire 8p ahead to 907p.
But there was gloom for much of the rest of the market as a string of companies paid dividends to shareholders.
Lloyds TSB topped the top flight fallers board with losses of more than 5% or 27.75p to 515.5p, while rival banks Royal Bank of Scotland and Standard Chartered suffered the same fate, sliding 67p to 1838p and 37p to 1412p respectively.
Anglo American was also hit by its timing of going ex-dividend – losing 104p to 1946 – but other miners were in retreat as the sector continued to come under pressure from weaker metal prices.
Kazakhmys was off 33.5p to 822p, while BHP Billiton lost 31.5p to 903p and Xstrata fell 53p to 1639p.
Elsewhere, doorstep lender Provident Financial gained 7% or 39.5p to 646.5p after it outlined plans to split off its international business for a separate listing on the stock exchange.
