Poor Wall St start ends FTSE rise
The London market’s seven-day winning streak came to an end today following a poor start to the session on Wall Street.
The FTSE 100 Index closed just shy of its intra-day low, down 30.8 points at 4459.3, after failing to break into positive territory throughout the day.
The Dow Jones Industrial Average fell 27 points shortly after London’s close, with data showing US consumer confidence falling in August from a two-year high as job growth faded and oil prices reached a record.
Morale in the City also took a battering from figures showing a sharp slowdown in consumer spending, after a CBI survey found August retail sales at their weakest in 18 months.
And housebuilders had few friends in the marketplace after the Bank of England said mortgage lending fell by £450 million in July.
National Grid Transco had propped up the Footsie early on after the company announced plans for a £2 billion return of capital.
But warmth towards the sale of four of its regional distribution networks for a better-than-expected £5.8 billion quickly wore off, leaving its shares unchanged at 463.75p.
Scottish & Southern Energy, which is buying networks in Scotland and the South of England, fell 1.5p to 737p, while United Utilities – part of a consortium buying the North of England region – was unchanged at 547.5p.
Food packaging-to-cigarette filters supplier Bunzl was among the heaviest fallers, down 7.5p to 424p, after it said higher oil prices, currency swings and problems in the North American supermarkets sector were affecting trading.
But brewers, pubs and spirits groups were in favour, with Enterprise Inns topping the risers with a 16.5p gain to 547p, SAB Miller advancing 5.5p to 691p, Scottish & Newcastle moving 1.75p ahead to 396.25p and Allied Domecq lifting 1.5p to 444p.
Outside the top flight, Bovis Homes was in the red in the wake of the latest mortgage lending figures from the Bank of England. Its shares slipped 13p to 560p, although rival Redrow stood its ground to remain unchanged at 360p.
But signs of a turnaround at logistics group Brambles sent shares nearly 11% or 23.75p higher at 242.5p, topping the FTSE 250 risers.
At 527 million Australian dollars (£205.6m), second-half operating profits were 116 million Australian dollars (£45.3m) higher than the final six months of 2003.
A weekend newspaper report that Wal-Mart was considering a £1 billion takeover bid for Matalan sent shares in the discount clothing retailer up 3% or 6.5p to 206.25p.
Civil engineer John Laing was another to improve today after it beat expectations for half-year profits and outlined further opportunities for growth, including the £4 billion Government programme to modernise the NHS. Shares ticked up 4p to 235p.
The day’s biggest risers were Enterprise Inns, up 16.5p to 547p, Alliance Unichem ahead 13.5p to 673.5p, Smith & Nephew lifting 8p to 500p and Abbey National climbing 8.25p to 598p.
Biggest fallers included Sage Group, off 4.5p to 163.5p, Reuters down 8.25p to 320p, Vodafone losing 3p to 126.25p and Legal & General off 2.25p to 99.5p.
