London slips despite late surge
The London market set aside high oil prices to stage an afternoon fightback today but still ended the session in negative territory.
Mining stocks put the heaviest drag on the FTSE 100 Index as it closed 12.0 points lower at 4441.8.
Investors entered the market after lunchtime as attention began to switch to a busy time for corporate news next week with firms including BT, Sainsbury’s and mmO2 due to report.
A lift was also provided by US industrial production data and a consumer sentiment survey that were not as strong as investors expected.
This increased doubts over whether the US Federal Reserve will hike interest rates in June, although analysts said this remained the likely timetable.
The Dow Jones Industrial Average hovered around the break-even mark after shedding more than 60 points early on.
British Airways was the heaviest faller in London ahead of its full-year results on Monday as sky-high oil prices continued to cloud its longer term outlook.
Analysts worried that a ticket surcharge to cover the higher cost of crude may not be sustainable in the face of competition as the stock fell 4% or 9.25p to 246.75p.
Mining stocks were major losers as profit takers homed in on Rio Tinto, off 45p to 1212p.
Antofagasta was another major faller, down 28p at 876p, while Anglo American weakened 31p to 1078p.
On a slow day for corporate news, troubled retailer Marks & Spencer headed the Footsie risers following yesterday’s appointment of Asda product director Kate Bostock as its new head of womenswear. Shares rose more than 2%, or 6.75p to 282p.
High street retailer Dixons was also faring well – 0.25p higher at 147p - after broker Credit Suisse First Boston said recent weakness offered a buying opportunity.
Elsewhere bookmaker and casino operator Stanley Leisure lost ground after warning annual profits may be below last year’s levels. Shares were off 7p to 460p.
Shares in IMI climbed 10p to 365.25p after the engineering group announced a good start to the year, with sales ahead by 5% in the first quarter.
The biggest risers in the Footsie today were Marks & Spencer up 6.75p to 282p, mmO2 cheering 2.25p to 96p, 3i Group lifting 9.5p to 611.5p and Smiths Group advancing 9p to 701p.
The heaviest fallers were British Airways weakening 9.25p to 246.75p, Rio Tinto down 45p to 1212p, Antofagasta slipping 28p to 876p and Anglo American losing 31p to 1078p.
