FTSE kept in check
Negative reaction to a batch of top-flight results kept the London market in check today.
The top three fallers of BT, Scottish Power and SABmiller all had figures out, causing the FTSE 100 Index to remain close to its opening mark – up 3.4 points at 5443.2 by mid-morning after surrendering an initial 24 points rise.
The bright spot of the market was provided by exploration company Cairn Energy as its shares jumped another 6% – up 103p to 1863p – on the back of an operational update, which one broker said left scope for upgrades. Cairn is now back approaching the record levels seen in September.
Stocks in the financial sector joined Cairn on the way up with HBOS rising 4.5p to 884p, Barclays up 4p to 584p and Lloyds TSB cheering 2.5p to 467p.
Insurers were buoyed by the latest trading update from Royal & Sun Alliance, as cost cuts and an improved operational performance helped earnings double in the first nine months of the year.
Shares were 1.5p higher at 106.25p while Prudential lifted 4.5p to 512p and Norwich Union owner Aviva rose 11.5p to 685.5p.
But in contrast, telecoms group BT was one of the heaviest fallers as a second quarter underlying earnings fall of 2% to £1.38bn (€2bn) proved to be near the bottom end of market expectations. Shares lost 2% or 4.5p to 210p.
Scottish Power was also in the doldrums, down 7.5p at 570.5p as it delivered a sharp rise in profits but remained tight-lipped on takeover speculation. Brewer SABmiller also dipped 23p to 1058p in the wake of results.
Elsewhere, takeover activity continued in the lower tiers of the market as Kingston Communications revealed it had received a conditional approach. Shares jumped 11p to 67p, a rise of 20%.
