FTSE falls despite late rally
The London market ended today in the red despite a rally in New York after better-than-expected earnings numbers.
The FTSE 100 Index dipped below its opening mark in late afternoon trading to end the session 2.4 points off at 4819.6.
US stocks rose in the face of better-than-expected profits from companies such as Motorola and United Parcel Service.
The Dow Jones Industrial Average lifted 93 points to 10106 shortly after London’s close.
The upbeat figures offset gloomy economic news, with record fuel prices leading to a slowdown in spending on goods and services last month.
Back in London, weak retail sales figures failed to help the mood, dropping by 0.1% in March against growth of 0.3% in February.
Bid talk limited the City’s losses as a deal for Allied Domecq and speculation of an approach for ITV kept investors motivated.
ITV ended the day at the top of the Footsie risers as bid talk continued to swirl around the broadcaster, which analysts said might attract takeover interest from former BBC director general Greg Dyke or one of the big private equity firms.
ITV shares rose nearly 4% or 4.75p to 126.5p and helped lift the rest of the media sector with Reuters up 8p at 413p, BSkyB ahead 7p at 565p and Reed Elsevier 5.5p stronger at 529p.
Drinks giant Allied Domecq was second as its shareholders toasted a takeover by French group Pernod Ricard. Shares lifted 22p to 665p.
Bookmaker William Hill was also in focus as investors continued to review Monday’s statement that it was interested in buying 600 betting shops from Stanley Leisure. The stock rose 2p to 564p.
Pizza delivery chain Domino’s advanced 4%, up 9.5p to 276.5p after reporting an 8.2% increase in like-for-like sales in the 15 weeks to April 17.
Today’s biggest risers were ITV, up 4.75p to 126.5p, Allied Domecq ahead 22p at 665p, SABMiller gaining 22p to 813p and Reuters lifting 8p to 413p.
The heaviest fallers were Shire Pharaceuticals, down 47p to 559.5p, Schroders NV losing 13p to 651p, BG Group off 7.75p to 402.5p and Old Mutual weakening 2p to 122.75p.
