Bleak session for FTSE
FTSE investors suffered a bleak session today as heavyweight mining stocks and drug maker AstraZeneca dragged the London market into the red.
AstraZeneca shares were down more than 4% after it lost a key patent for its best-selling heartburn treatment Nexium.
It was followed down by mining stocks after the price of copper slipped and the losses helped sent the FTSE 100 Index down 43.5 points to 6203.9.
The disappointing session followed last week’s impressive gains which took the Footsie to its highest level for six years. The mood in the City today was not helped today by a heavy sell-off in the Far East overnight and early losses in New York.
However, second-tier drinks company Britvic offered some much needed fizz in London after it was reported that a significant proportion of the company’s shares had changed hands in a move fuelling takeover speculation.
Shares were up nearly 7% or 18p to 281p and after the market closed it was revealed private equity firm Permira had taken a 13.98% stake in the company.
Back in the top flight, AstraZeneca was off 126p to 2738p after the European Patent office withdrew a patent for Nexium. Rival firm GlaxoSmithKline was down 12p to 1332p.
And miners felt the pinch from falling copper prices with Kazakhmys 31p lower at 1138p, Vedanta Resources down 24p to 1199p and Lonmin off 51p to 3037p.
Banks were also pulling the market lower with Alliance & Leicester down 30p to 1114p, Bradford & Bingley 8p worse off at 468p and Royal Bank of Scotland 16p weaker at 1979p.
Cairn Energy joined the sell-off with losses of 41p to 1820p after UBS lowered its target price for the stock. UBS noted disappointment with the outcome of Cairn’s initial public offering in India where it is planning to list Cairn India on the Bombay Stock Exchange and the National Stock Exchange of India next month.
Broadcaster ITV slipped 2p to 107.5p after reporting advertising revenues had slipped 12.5% at its flagship ITV1 channel. It came despite the station admitting the performance had been in-line with expectations.
On a brighter note, Centrica led the risers board off the back of a broker upgrade following yesterday’s trading statement which offered better than expected full-year profits guidance. Shares gained 7p to 352.25p.
It was a mixed day for retailers as investors tried to pick the likely winners and losers on the high street in the final days before Christmas.
Marks & Spencer gave up early gains to close down 2.5p at 711.5p, while Currys owner DSG International sank 5p to 192.25p. But Next was up a penny to 1815p and Argos owner Home Retail Group lifted 0.25p to 407.5p.
The day’s biggest blue chip risers were Centrica up 7p to 352.25p, Sage up 3.5p to 267.5p, British American Tobacco 18p higher at 1460p and Persimmon 15p to the good at 1504p.
The heaviest fallers were AstraZeneca off 126p at 2738p, Kazakhmys down 31p to 1138p, Alliance & Leicester 30p lower at 1114p, and DSG down 5p to 192.25p.
