FTSE fails to find major gains
British banking stocks were adding to the lacklustre mood in London today as the FTSE 100 Index struggled to make major gains.
An update from mortgage lender Northern Rock failed to cheer investors as the Footsie advanced 2.9 points to 4324.0 by mid-morning.
Earlier in the session the Footsie had slipped below the 4300 barrier as it reacted to a fourth consecutive session of losses in New York.
US blue-chips lost ground last night after 3M, the maker of Post-It notes and Scotch tape, became the latest company to unveil disappointing earnings.
In London, Northern Rock was one of the heaviest Footsie fallers despite saying continued strong demand for re-mortgaging would offset the impact of rising interest rates. Shares fell 11.5p to 681.5p.
Other financial stocks were in the doldrums, with Abbey National losing more than 2%, down 10.75p to 469.25p and Royal & Sun Alliance off 1.25p to 76.75p.
Pharmaceuticals companies were doing their best to drive the market forward, with AstraZeneca adding 75p to 2360p as investors awaited Thursday’s update on its performance in the second quarter.
Rival GlaxoSmithKline also cheered 26p to 1068p and Shire Pharmaceuticals added 8.5p to 444.5p after reassuring investors that a regulatory delay in the US would not prevent its Fosrenol drug from launching on time.
However, market sentiment was dented by news that two companies planning to float this week had slashed their flotation prices.
Branston Pickle owner Premier Foods was forced to revise down the price of its long-awaited flotation, with 215p-a-share marking the bottom of the new range unveiled yesterday.
Virgin Mobile has also cut its offer price by 15% in an effort to stimulate interest among investors.
