FTSE falls as BP fails to fuel climb
The FTSE 100 Index fell into the red today as record profits by BP and hopes of an interest rate cut failed to excite investors.
Oil giant BP lost 2% of its market value, down 13p to 629.5p, as investors cashed in following today’s news that it was making profits of about £1.4m (€2.02m) an hour.
This retreat by the UK’s largest listed company contributed to the FTSE 100 Index closing 14.5 points lower at 5256.2.
Economic news supporting hopes of lower borrowing costs also failed to support the market, with manufacturers reporting a fall in new orders for the third successive quarter.
New York shares provided no momentum, with the Dow Jones Industrial Average virtually unchanged by the end of trading in London.
News and information group Reuters beat BP to the top of the Footsie fallers board as a warning of higher investment and restructuring costs overshadowed positive results. The stock weakened 7% or 30.5p to 381.75p.
But mobile phone group Vodafone was heading in the opposite direction after brokers revised their guidance in the wake of encouraging subscriber numbers yesterday.
Amongst other firms reporting today, confectionery firm Cadbury Schweppes was upbeat after saying its flagship Dairy Milk brand had helped it increase group sales by 6%. The stock lifted 1% or 5.5p to 547.5p after it reported 9% growth in sales of the famous brand.
The highest Footsie risers today were Yell Group up 20.5p to 460p, Cable & Wireless adding 5.5p to 158.75p, Vodafone up 3.5p to 148.75p and Smiths Group adding 16p to 934.5p.
The heaviest fallers were Reuters off 30.5p to 381.75p, BP down 13p to 629.5p, ICI off 4.75p to 259p and Alliance UniChem down 12p to 833p.
