FTSE stuck in red
The FTSE 100 Index was deep in the red for a second successive session today - despite the best efforts of top flight companies BT and Vodafone.
Inflationary fears and the impact of the weak US dollar caused the Footsie to fall by as much as 156 points, following its heaviest percentage decline for two years on Friday.
Miners led the latest drop, although heavyweights BT and Vodafone lent some resistance to leave the Footsie 80.8 points lower at 5831.6, a fall of 1.3%.
Jeremy Batstone, of Charles Stanley Stockbrokers, said: “It’s a correction at the moment and it’s too early to call it anything more sinister.”
Mining stocks, which post results in US dollars, have been badly affected by the decline in the value of the greenback. Xstrata dropped 6%, or 153p to 2257p, Kazakhmys dived 6%, or 75p to 1240p, while BHP Billiton was off 55p at 1114p.
Plumb Center and Build Center chain Wolseley was 3% lower down 39p to 1250p as it has sizeable presence in the United States.
BT topped the risers board – up 3% or 5.5p to 216p ahead of full-year results on Thursday and following reports it is to announce it has reduced its pension deficit.
Vodafone was ahead 2%, or 2.75p at 126.75p, following renewed speculation it could sell its Verizon stake in the US.
Outside the top flight, Cambridge Antibody Technology Group was up 63% – a gain of 502.5p to 1293.5p – after agreeing to back a takeover approach from pharmaceuticals giant AstraZeneca.
Food equipment group Enodis rejected an offer at the weekend but saw its shares rise 17.5p to 193p after it posted strong results with a rise in pre-tax profits of 71%. US-based corporation Middleby is behind the takeover interest.
