Blue chips on back foot in London
London’s blue chips made little headway today despite strong overnight gains in the US.
Positive results from software group Sage and catering giant Compass failed to give impetus to the FTSE 100 Index, just 2.6 points ahead at 6143.3 by mid morning.
The Footsie trod water as a 200-point rise for the Dow Jones Industrial Average was offset by data released after the close showing US consumer confidence at a two-year low – weighing on expectations for US trading later today.
Despite a subdued wider market, Sage was the leading Footsie riser with gains of 8%, or 15.55p, to 208.75p after it reported a 20% rise in full-year profits and hiked its dividend.
Compass was another strong performer after cheering investors with a higher dividend. The firm coped with rising food prices to produce full-year results at the top end of expectations, boosting shares 21.5p to 310.75p, or 7%.
Pubs group Punch Taverns also made progress after recent falls following its denial of rumours of a merger with rival Mitchells & Butlers. The stock rallied nearly 5%, or 37.5p, to 858p.
Among the fallers miners held back the market, with BHP Billiton off 31p at 1487p and its takeover target Rio Tinto 29p lower at 5137p. BHP was the leading faller after analysts said it may have to up its offer for the rival.
Wolseley shares were under pressure after the building materials group said profits fell 15% in the three months to October 31. That led analysts to downgrade their profit forecasts, with shares off 9p to 632p as a result.
Precious metals to catalytic convertors firm Johnson Matthey meanwhile dipped 2% after first-half results disappointed investors. The company slipped 29p to 1631p despite first half profits of £120 million – 15% ahead of last year.
