Footsie continues to struggle
London shares were battling today to prevent a full week of losses for the FTSE 100 Index.
Nerves over Iraq and gloomy updates from insurers and banks have put pressure on the Footsie and led to four successive days of weakness.
And the prospect of another negative session was hanging in the balance as the blue-chip index reached lunchtime 18.2 points ahead at 3588.1.
Analysts said there appeared to be no firm direction for the market, which has lacked impetus because of an absence of major corporate news.
The Dow Jones Industrial Average, which closed ahead last night, is now likely to be a key factor in the Footsie’s progress as a number of key economic announcements are due in the United States later today.
In London, banks and insurers were finally helping to boost the market after a difficult week.
With mutual Standard Life assuring investors over its financial position, Royal & Sun Alliance rose 4.75p to 70.25p and Prudential lifted 4.25p to 334.5p.
Norwich Union owner Aviva also gained 10.5p to 390.5p but Legal & General eased a penny to 73.25p.
Among the banks, Abbey National gained 10p to 388.5p, HBOS rose 19.5p at 645p, Barclays cheered 8.5p to 354p and Royal Bank of Scotland lifted 33p to £14.27.
Others on the up included Shire Pharmaceuticals, which gained 8% – up 24p at 317p – as investors returned to the stock after heavy falls yesterday in the wake of its annual results announcement.
And airports operator BAA rose 20p to 430.5p after the Civil Aviation Authority agreed a 40% increase in the charges faced by airlines for using the UK’s biggest airport Heathrow.
However, retailers were largely unmoved by the competition watchdog’s concerns over the sale of extended warranties on household electrical products. Dixons eased 0.25p to 91p while Comet owner Kingfisher rose 3p to 224p.
Outside the Footsie, leisure group Rank fell 1.5p to 233p as it reported that tough trading conditions had continued at its Hard Rock cafes.
The fall overturned early gains driven by the group’s strong performance in gaming as underlying profits rose £12 million to £200.3 million.
Groupe Chez Gerard, owners of the Chez Gerard restaurant chain, gained almost 4% – lifting 2.5p to 68.5p – after it said it had arrested the decline in its performance following the disposal of a number of under-performing sites.
