Uncertain session for FTSE
Weaker property and pharmaceutical stocks ensured the London market finished an uncertain session in negative territory today.
A weak start to business in New York added to pressure as the FTSE 100 Index gave up a lunchtime gain to close 25.9 points lower at 6194.2.
Miners bolstered the Footsie by recouping some of their losses seen on Friday, while Next continued to surge after its trading update last week.
The heaviest falls of the session were seen in real estate after HSBC downgraded a number of stocks in the sector. Land Securities was off 73p to 2210p while British Land fell 48p to 1604p, Slough Estates dropped 13.5p to 770p and Hammerson sank 38p to 1497p.
HSBC said excitement over the introduction of real estate investment trusts had pushed shares in companies to unsustainable levels.
Fears that lawmakers could impose lower drug prices in the United States meant the market also priced pharmaceutical stocks lower, with GlaxoSmithKline off 31p at 1360p, AstraZeneca down 54p at 2804p and Shire 14p cheaper at 1090p.
BP and Royal Dutch Shell were off 4.5p and 19p at 552.5p and 1713p respectively, as oil prices remained close to 55 US dollars a barrel and investors awaited a BP trading update tomorrow.
Fashion chain Next gained 1% to add to its impressive 4% rise on Friday following last week’s update. The latest move came after Credit Suisse raised its target price to 2300p from 2000p.
Shares were up 21p to 1961p today.
The rest of the sector fared less well after Marks & Spencer dipped 9p to 725p ahead of its trading update tomorrow, which investors expect will show strong sales over the Christmas period.
British Airways spent much of the session on the Footsie leaderboard after the airline reached an agreement with its unions on plans to tackle a £2.1bn (€3.1bn) pensions deficit on Friday night. Shares were up by 2% at one point but closed 4.25p lower at 544.5p after profit-taking.
Elsewhere, there was a welcome boost for Michael Grade in his first day as executive chairman of ITV. Shares were up 1.5p at 107p.
Outside the top flight, photographic retailer Jessops slumped 15% after it issued a profits warning and said sales were down 6.9% in six weeks to January 5. Shares fell 22.5p to 126.5p.
Clinton Cards moved in the opposite direction after a like-for-like sales rise of 3% banished concerns that it had been caught in the retail slowdown. Shares were up 1.75p at 61.5p.
And Northern Foods surged 2% as analysts speculated that the supermarket food supplier had benefited from the resurgence of Marks & Spencer, a key customer Northern closed 2.5p higher at 120.5p.
The biggest Footsie risers were Cairn Energy up 55p at 1725p, Lonmin ahead 90p at 2890p, Xstrata up 51p at 2314p and Old Mutual ahead 3.75p at 174.5p.
The biggest fallers were Land Securities down 73p at 2210p, British Land off 48p at 1604p, Hammerson down 38p at 1497p and Pearson off 18.5p at 762p.
