FTSE struggles for direction
A disappointing update from British Airways left investors in subdued mood today as the London market struggled for direction.
The FTSE 100 Index lifted just one point to 6150.3 in the first hour of trading with BA weighing heavily on investors’ minds.
The airline was down 2% or 9.25p to 455.75p after it said the cost of the August security alert hit £100m (€1.49m) – well above the £40m (€60m) it originally expected.
BA also reported a 27% fall in pre-tax profits for the second quarter and cut its revenues growth forecast for the full year by half a per cent.
The airline was followed down by a string of mining stocks with Lonmin off 65p to 2956p, Rio Tinto 58p lower at 2879p and Anglo American losing 21p to 2397p.
And in the second tier, Aga Foodservice Group and Enodis both lost more than 3% of their value as investors digested news that a tie-up between the two was unlikely.
Enodis was down 6.75p to 191.75p and Aga fell 15p to 391p after Enodis last night said it rejected a proposed merger with Aga.
Back in the top flight, BSkyB shares were up 1.5p to 551.5p after it signed up 113,000 customers to its new broadband service and added more television subscribers than expected.
And oil firms Royal Dutch Shell and BP offered some support as the cost of crude moved back towards 56 US dollars a barrel. Shell was up 17p to 1863p while rival BP lifted 2.5p to 589p.
But bakery chain Greggs was down 62p to 4150p after it said the unseasonably mild and wet autumn weather led to disappointing sales on the high street.
And hotel chain Millennium & Copthorne shares slipped 0.75p to 536.25p after its results for the third quarter met analysts’ expectations but failed to excite investors.
