FTSE slips amid mortgage news
The London market sank deeper into the red today after a broker advised investors to bail out of Bradford & Bingley.
The FTSE 100 Index compounded earlier losses to stand 43.1 points off at 5017.1 by mid-morning at 11.15am.
FTSE 250 stock B&B announced a higher-than-expected 6% rise in pre-tax profits for the year to December 31.
But the mortgage bank spoiled the positive picture for investors by saying growth in the important buy-to-let market was moderating.
The news had a knock-on effect on top flight banking stocks, particularly B&B’s main rivals in the mortgage market.
HBOS was the highest faller among the mortgage banks, dropping 15.5p to 850.5p, while Alliance & Leicester lost 11.5p to 924.5p and Northern Rock shed 2p to 805.5p. Other fallers in the sector included Barclays, which slipped more than 1% or 8.5p to 604p, Royal Bank of Scotland off 23p to 1801p and Lloyds TSB cooling 5.75p to 500.75p.
The first day of trading in the US after yesterday’s President’s Day public holiday looked unlikely to provide support for equities in London. Analysts were forecasting the Dow Jones Industrial Average to open down 27 points.
Back in the City, early gains by Marks & Spencer turned into losses after retail tycoon Philip Green moved to quash speculation that he may be lining up another takeover approach for the troubled group. Shares in M&S weakened more than 1% or 5p to 362.5p.
Confectionery group Thorntons lifted nearly 2%, or 3p, to 156.5p after saying sales of its products through other retailers had helped to lift half year profits by 10%.
