Good trading does not boost FTSE
Strong gains for mining and commodity stocks failed to drag the London market into positive territory today.
Property and retail firms felt the pain as investors braced themselves for a likely rise in interest rates later this week.
The FTSE 100 Index began the week on the back foot, closing 17.3 points lower at 6590.6, despite an upbeat opening in the US where markets were cheered by positive manufacturing data.
Property firm Segro – formerly Slough Estates – was among the fallers, dipping more than 2%, or 14p, to 611p. It was followed down by Hammerson, off 22p to 1412p, while Land Securities fell 33p to 1710p and British Land shed 26p to 1314p.
And retailers continued to disappoint as wet weather and weakening consumer confidence affected sentiment. Dixons owner DSG International fell by 2%, off 3.2p at 155.5p, Next was 39p lower at 1970p, and supermarket chain Morrisons was off 7p at 295.5p.
The same factors appeared to put pressure on the pub chains, with Enterprise Inns dropping 15.5p to 673.5p. Mitchells & Butlers was down 16.5p at 863p.
Meanwhile security fears and high oil prices turned investors off the aerospace sector, where British Airways was down 5.75p to 412.75p as concern grew over the impact of tighter security measures following events in Glasgow. Fellow carrier easyJet also fell 10p, or 2%, to 515p.
Sentiment towards BA was also affected by oil prices of above 70 US dollars a barrel, although this was a positive for BP, which climbed 1p to 604p, while Royal Dutch Shell gained 26p to 2109p.
Among commodity stocks, platinum specialist Lonmin added 159p to 4179p amid talk from traders of a potential 4500p a share bid from rival Xstrata, as global demand fuelled consolidation in the sector. Xstrata lifted 71p to 3058p, while Rio Tinto advanced 115p to 3942p.
Other firms on the front foot included housebuilders after a bullish trading update from Barratt Developments at the end of last week. Barratt gained 7p to 1000p, while top flight rival Persimmon was ahead 15p at 1173p.
In the second tier, biscuits maker Northern Foods crumbled nearly 5% after Citigroup cut its full-year profits estimate. Shares responded with a decline of 5.5p to 113.5p.
Sports Direct International – owner of Mike Ashley’s Sports World empire – fell more than 2%, or 6.5p, to 175p, as investors worried the company may end up overpaying for US-based boxing equipment firm Everlast.
Elsewhere, positive trading updates from casino company PartyGaming and construction firm Galliford Try’s predictions of profits “significantly ahead” of last year caused shares in the pair to rise 1.75p and 10.75p to 32.5p and 169.5p respectively.
The biggest Footsie risers were Lonmin, up 159p at 4179p, Rio Tinto ahead 115p at 3942p, BHP Billiton up 35p at 1425p and Xstrata ahead 71p at 3058p.
The biggest fallers were Icap, down 14.5p at 479.5p, Imperial Tobacco off 57p at 2250p, Morrisons down 7p at 295.5p and Enterprise Inns off 15.5p at 673.5p.
