FTSE dives towards 4200
London's FTSE 100 Index has shed more of the gains achieved in recent sessions as a clutch of blue-chip stocks headed south.
The second successive downward session saw the Footsie weaken 41.6 points to 4209.2 by lunchtime as Monday's year-long high of 4272 disappeared from view.
Lacklustre figures from Hewlett-Packard did little for the overall mood, while a number of London stocks put pressure on the market by going ex-dividend. This means a company's share price no longer includes the value of its dividend.
Banking giant HSBC was among those affected, losing 20p to 796.5p while Abbey National shed 18p at 549p, insurer Prudential fell 10.25p to 437p and broadcaster Granada slipped 4.5p at 103.5p.
London's progress over the remainder of the session is expected to be further tested by forecasts of a downbeat opening for New York as traders continue to digest last night's disappointing third quarter Hewlett-Packard results.
Retailer Dixons, which had fallen in the wake of independent rival PowerHouse's decision to seek administration protection, recovered to stand close to its opening mark, down 0.25p at 139.75p.
There was also better news for energy stocks, which had been hit earlier this week by higher oil prices on the back of Middle East uncertainty.
Scottish & Southern Energy rose 2.5p to 637.5p, United Utilities gained 11.5p to 539.5p and Centrica climbed 2.5p to 177.75p.
Other attractive havens included the tobacco sector after Imperial Tobacco lifted 29p to 994p and Gallaher cheered 14p to 570.5p.
Elsewhere, pharmaceuticals giant GlaxoSmithKline was out of favour with investors despite announcing it had won US regulatory approval for Levitra - its answer to erectile dysfunction drug Viagra.
Shares dipped 11p to 1229p.
The negative mood was also to be found outside the top flight with department store group Beale down 4.5p to 80.5p after warning of a subdued full year performance after the recent heatwave melted sales.
Tech stocks in the FTSE 250 Index were also quick to give back some of the healthy gains achieved yesterday with IT hardware group Spirent down 1.75p at 46p and LogicaCMG off 6.25p at 197.75p.
Among the few stocks attracting attention for positive reasons was air filtration group Domnick Hunter which climbed almost 5% or 17.5p to 389.5p.
The company cheered investors with news of a 16% surge in first half profits to a new record high and strong demand for its products ahead.
