FTSE loses some post-election gloss
A bout of profit-taking dampened the London market today as shares lost some of their post-US election strength.
Relief at news of a victory by President Bush had boosted the FTSE 100 Index yesterday, but the index moved 16.4 points lower to 4702.1 by mid-morning.
Traders across the Atlantic also applauded the result last night, sending the Dow Jones Industrial Average more than 100 points higher.
In London, some of yesterday’s biggest climbers fell victim to profit taking, including drugs company AstraZeneca, off 19p to 2300p, and rival GlaxoSmithKline falling 9p to 1184p.
Elsewhere in the sector, Shire Pharmaceuticals was another heavy faller ahead of today’s third quarter results. Shares weakened 7p to 533.5p.
Insurers also lost sight of yesterday’s gains, with Prudential retreating 5.75p to 410p and Legal & General off a penny to 102.5p.
Oil companies did their best to lift the mood as the price of a barrel of crude in the US remained above $50. BP rose 7p to 540p and Shell added 2.5p to 433.25p.
Among those reporting results, Scottish & Southern Energy was in the red – off 3.5p to 826.5p – as traders failed to warm to an 11% rise in half-year profits.
Outside the top flight, shipping group P&O saw its stock fall 2p to 268.25p after failing to report an improvement at its troubled ferry business.
Hotels group Millennium & Copthorne slipped 2p lower to 334.5p after saying third-quarter profits doubled to £13.3m (€19.1m) as it continued to recover from the travel industry downturn.
Retirement housebuilder McCarthy & Stone failed to cheer the market with a 27% hike in annual profits. Shares dropped 18.5p to 595.5p as it warned margins were likely to ease slightly in the year ahead.
But sugar producer Tate & Lyle was lifted by a 9.2% rise in half-year profits to £130m (€186.8m), sending shares 2.5p higher to 444p.
