FTSE stable
Strong gains from miners and blue-chip airline British Airways failed to provide direction for the London market today.
The FTSE 100 Index stood just 4 points higher at 6091.3 in mid-morning trading, with investor sentiment knocked by a poor overnight close on Wall Street.
The US Federal Reserve’s quarter point cut in interest rates was expected, but investors were surprised by indications that further easing in monetary policy may still be seen, leaving America’s Dow Jones Industrial Average in negative territory.
But in London, British Airways was enjoying strong advances after it admitted to talks over a potential commercial tie-up with US rivals American Airlines and Continental Airlines.
The group saw shares rise almost 4%, or 8.25p to 234.75p, as reports suggested the trio could co-ordinate schedules, fares and frequent flyer programmes for transatlantic flights.
BA was joined on the risers board by miners, clawing back lost ground after a downgrade for Vedanta Resources had sent shares across the sector tumbling.
Today Vedanta fought back with a 2% gain, up 47p at 2292p, with Kazakhmys leading the gains, ahead 4%, or 71p at 1653p.
But retailers were on the back foot after Goldman Sachs cut B&Q owner Kingfisher to ’sell’ saying the outlook for DIY spending looked weak.
Kingfisher dropped 3.6p to 129.2p – a fall of nearly 3% – while Homebase parent Home Retail Group was also dragged lower, off 9.25p at 254.75p, losing some of the gains seen yesterday when it reported forecast-beating profits.
Elsewhere, shopping centre and office real estate group Hammerson fell 12p to 996p after it said property values had fallen further this year while retailers suffered and City rents fell as banks cut staff amid the credit crunch.
In the FTSE 250, Rank Group saw shares leap 8% after the Government yesterday said it was considering helping the bingo industry, aided also by a positive note from Evolution Securities.
Shares in the group rose 5p to 3.25p.
