US market fails to lift FTSE
The London market fell back today as investors took profits after a run of gains.
A better-than-expected start in the US failed to lift the City and a subdued session saw the FTSE 100 Index close 40.2 points adrift at 4130.5.
But the top flight has gained nearly 200 points over the last week and traders remained hopeful that a bull market was still on the cards.
City Index trader Tom Hougaard said: “Hopes for a bull market are still on track. We have gained over the last week and people will now be looking to take profits, it’s completely natural.”
Depressing trading today was a 9% slide by mortgage bank Abbey National, which suffered after Bank of Ireland revealed it had dropped merger plans.
Abbey also named Luqman Arnold its new chief executive today, ending a three-month search. Shares tumbled 61.5p to 623.5p.
Other financial stocks under pressure after recent gains included fund manager Schroders NV, off 58p at 482p, insurer Prudential, down 15p at 452p and banking group Lloyds TSB, 17p weaker at 565p.
Royal & Sun Alliance sparked 3.75p at 115.5p, however, boosted by positive comments from Merrill Lynch ahead of a likely rights issue.
Elsewhere, telecom stocks were on the back foot after Swedish giant Ericsson cut targets for mobile systems sales and posted larger-than-expected losses.
MmO2 shed 2.25p at 49p, BT eased a penny at 181.5p and Cable & Wireless slid 4p at 131.5p.
And aero-engine firm Rolls-Royce lost early gains to drop a penny to 103.75p after unveiling Schlumberger boss Euan Baird as its new chairman.
But retail stocks were stronger ahead of a busy time for the sector. A number of high street names are scheduled to report next week while retail sales figures for September are also due.
Supermarket Safeway added 6p at 216p, electrical chain Dixons sparked 4.25p at 182p and fashion giant Next put on 15.5p at 906.5p.
Among smaller stocks, tour operator MyTravel took another hammering after an analyst branded its shares worthless.
The group yesterday warned it had a potential £30m black hole in its accounts, and said profits for the year were set to be a further £20m below expectations.
Then shares plunged 62% and today they tumbled another 37%, off 10.5p at 18p.
Its market value is now just £89m compared to highs earlier this year of £1.4bn.
But New Covent Garden Soup firm S Daniels saw shares surge 42% after receiving a takeover approach from its biggest shareholder.
The offer, which is backed by the Daniels board, values the group – which also makes salads and juices – at £23.4 million or 14p a share. Shares jumped 4p at 13.5p.
Back in the FTSE 100, the biggest risers were Sage, up 7.25p at 137.25p, Royal & Sun Alliance, up 3.75p at 115.5p, Invensys, up 2p at 67p and Safeway, up 6p at 216p.
The heaviest fallers were Schroders NV, off 58p at 482p, Abbey National, off 61.5p at 623.5p, mmO2, off 2.25p at 49p and Xstrata, off 30p at 668.5p.
