US losses send FTSE down
Pubs giant Punch Taverns today saw shares slide on investor disappointment over its property plans, fuelling a lacklustre session for the London market.
The FTSE 100 Index stood 30.1 points down at 6419.1 by mid-morning after overnight losses in the US sent the Footsie into reverse on opening.
Punch Group, the UK’s biggest pub group, led the day’s fallers with a drop of 4%, or 55p, to 1249p as strong interim results failed to lift shareholder spirits after the firm said it was unlikely to spin off its property assets into a tax-efficient real estate investment trust.
The banking sector also weighed heavy on the Footsie, with Northern Rock down 19p at 1058p, HBOS off 12p at 1071p and Lloyds TSB down 6p at 575p.
Lambert & Butler cigarette maker Imperial Tobacco was another blue-chip stock to suffer, with shares falling 19p to 2158p despite posting an 11% operating profits rise to £658 million.
Other major fallers included plumbing and heating group Wolseley, down 11p at 1202p, while building materials firm Hanson was off 3%, or 24.5p, at 834.5p.
Lower oil prices hit oil major Royal Dutch Shell, with shares off 3p at 1772p. BP was down 2p to 563.5p.
Property was one of the few sectors enjoying positive sentiment.
Real estate investment trust Liberty International led the Footsie risers, as the company said it saw good rental growth from its network of regional shopping centres and posted a 29% rise in underlying first quarter pre-tax profits to £36 million.
The country’s third largest property firm said profits were lifted by growth of 11.4% in like-for-like rental income.
The news helped drive shares up for Slough Estates, ahead 12p at 785p, while real estate group Hammerson also saw its stock rise, up 17p to 1542p.
