Lacklustre start for Footsie
08/11/2006 - 11:23:55Rumours of a bid for Scottish Power swept the London market today during an otherwise disappointing session for the FTSE 100 Index.
Scottish Power, which spurned an approach from Powergen owner E.On last year, was up by almost 5% – a gain of 31.5p to 703p – at mid-morning.
The rest of the market was under pressure as investors prepared for a negative opening on Wall Street after Democrats seized control of the US House of Representatives. The Footsie was 31.8 points lower at 6212.2, a drop of 0.5%.
Analysts pointed out that the change in House leadership would be considered negative for stocks as it would likely result in a less business friendly environment.
Miners were among those under pressure, with Anglo American down 65p at 2442p and BHP Billiton off 24p at 1036p.
A number of stocks going ex-dividend – meaning investors lost the right to the most recent payout – added to the weakness in the top flight.
As well as Scottish Power, Dixons owner DSG International rose 3%, or 5.5p to 219.5p, after Citigroup raised its price target ahead of sales figures later this month.
Telecoms firm Cable and Wireless provided some upside in the second flight with a rise of almost 5% – or 7p to 158p – following positive half-year results.
Cable said UK underlying earnings grew by 14% to a better than expected £73 million in the six months to the end of September, putting it on course for full-year earnings of between £145 million and £150 million.
Back in the top flight, insurer Standard Life fell 5p to 288p despite reporting a 26% jump in sales following a record month for one of its key products. Chief executive Sandy Crombie said the number of policies lapsing remained above the long-term trend.
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