FTSE clinging above 4300 benchmark
Weak financial and telecoms stocks and fears of an interest rate hike left the FTSE 100 Index teetering above the 4300 level today.
Poor performances by almost every major bank and insurer, as well as mobile group mm02, dragged the Footsie down by 71.0 points to 4306.3 at the close.
Strong official retail sales figures compounded the gloom, prompting analysts to predict that a quarter percentage point rate hike to 4.75% next month was almost certain.
A downbeat start on Wall Street further dampened spirits, with the Dow Jones Industrial Average falling nearly 79 points after London’s close in the wake of lower-than-expected earnings from digger giant Caterpillar.
Associated British Foods topped a list of just four Footsie risers, rising 3% or 19.5p to 627p after buying a bakery and a herb and spice business from an Australian firm.
Ryanair’s shares tumbled 6% or 28c to €4.67 after it also started court proceedings against BAA relating to claims of over-charging on fuel levies.
Virgin Mobile, which made its stock market debut with conditional dealings yesterday, was below its flotation price of 200p – off 8.5p at 192.5p.
Biggest winners were AB Foods, up 19.5p to 627p, Abbey National lifting 13.25p to 493p, Morrisons increasing 1.75p to 179.25p and InterContinental Hotels gaining a penny to 588.5p.
Largest losers included Amvescap, down 14p to 316.75p, Man Group losing 54p to 1400p, BA falling 8.75p to 238.25p and Barclays off 16p to 444p.
