FTSE on brink of positive territory
29/11/2005 - 11:16:17The FTSE 100 Index was on the brink of positive territory this morning after a tough start to trading marked by losses for oil and banking stocks.
Barclays was the chief culprit for the early market malaise as investors took comments that it was “broadly” in line with consensus as an indication that its full-year results may turn out to be towards the lower end of hopes.
With weaker oil prices also dampening interest in the likes of BP and Cairn Energy, the Footsie was 3.4 points lower at 5474 by mid-morning.
Cairn Energy shares fell 21p to 1834p and BP dropped 5p to 639.5p after the cost of crude eased nearer to $57 on the back of warm US weather.
In the banking sector, Barclays declined more than 2% or 13.5p to 588.5p following its trading update and Lloyds TSB also faded 3p to 474p.
Catering giant Compass was heading the list of risers as the market expressed relief at the absence of bad news and some signs that it was getting back on track.
Its shares rose 4% or 7.75p to 208.25p after it reported full-year profits in line with expectations and said the sale of its travel concessions business and search for a new chief executive were progressing.
Elsewhere, logistics group Brambles rose 9% or 31.25p to 395p after announcing plans to sell its Cleanaway waste management arm to focus on its more profitable pallet-leasing and data management arms CHEP and Recall.
But there were two profits warnings from the UK high street where computer games retailer Game fell 4% or 3.25p to 74.5p after being hit by supply shortages and weak demand for older consoles and software.
Home Entertainment dropped 16% or 14.5p to 73.5p after sales at its ChoicesUK video rental chain continued to fall because of factors including piracy and lower prices of DVDs.
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