Scottish Power was among the blue-chip firms trying to lift spirits in London today as it benefited from continued takeover speculation.
Talk of a possible bid from Germany’s E.on left Scottish Power at the top of the FTSE 100 climbers board, rising 15.75p to 540.75p and extending gains racked up last week.
But the mood on the rest of the market was lacklustre, with the Footsie slipping 1.1 points to 5325.7 by mid-morning.
Miners BHP Billiton and Rio Tinto contributed to the downbeat performance after broker Smith Barney downgraded the stocks, causing them both to lose around 2% of their market value. BHP was hardest hit, losing 18.5p to 822.5p, while Rio lost 38p to 1952p.
The biggest Footsie stock, BP, was weighing on the mood after shares fell nearly 1% or 6p to 628.5p. Rival Royal Dutch Shell also lost 5p to 1877p, with the cost of oil off its recent record high of more than $70 a barrel.
Among firms reporting today, bookmaker William Hill lost 9p to 582p after weaker returns earlier this year caused interim profits to fall 6% – although it sounded an upbeat note about trading since then.
Elsewhere, FTSE 250 housebuilder Travis Perkins was out of favour after it warned last month’s cut in interest rates had done little to boost consumer spirits, and said it did not expect its markets to strengthen until 2006. Shares fell 71p to 1487p.
But packaging specialist DS Smith was the heaviest second-tier faller as it warned annual profits would fail to hit market hopes after higher energy costs continued to impact on the business.
The group lost nearly 9% of its value, off 14.25p to 149.5p, as it said the increase in its energy and fuel costs for the current financial year would be about double the £9m (€13.2m) previously expected.