FTSE looks set to close in the red again
London’s benchmark index looked set to close in the red for the fifth day in a row today.
The FTSE 100 Index stood 38.3 points down at 6466.8 by mid-morning as fears over higher interest rates and the threat of a stock market slowdown continued to weigh heavy on blue chips.
Mining stocks were affected by the uncertainty with the one of the heaviest fallers of the session being Vedanta Resources, down 51p at 1452p. Xstrata eased 75p to 2775p, while Kazakhmys slipped 29p to 1231p and Anglo America was also off 60p at 2872p.
Oil giant Royal Dutch Shell was one of the few risers, after an upgrade from Merrill Lynch. Shares were ahead 8p at 1980p with BP not far behind after benefiting from its rival’s upgrade, up 3.5p at 656.5p and helping prop up the Footsie.
InterContinental Hotels gave back earlier gains seen after investors saw the Barclay brothers increase their stake in the firm beyond 10%. The stock, which is seen as a potential takeover target, had been ahead 14p in the first hour of trading but was 7p down at 1298p by mid-morning.
Music retailer HMV led the FTSE 250 Index after it was reported bid interest in its Japanese business had been stronger than expected. Shares responded with a gain of 5.5p to 111p.
Meanwhile, shares in Dobbies Garden Centres were ahead 11% – or 145p at 1492.5p - after it emerged it had agreed to a takeover by supermarket chain Tesco.
The retail giant is paying £155.6 million for the garden centre business in what came as a surprise move for Tesco.
The supermarket said the deal was an important part of its strategy to provide customers with greater access to affordable energy saving and environmental products.
