Hammering for FTSE
The London market took a hammering today as a host of blue chip stocks went ex-dividend.
Highs of around 5900 earlier in the week disappeared over the horizon as investors reacted to losing the right to the most recent payouts by a number of heavyweights.
And with investors banking profits elsewhere and early losses on Wall Street, the FTSE 100 Index closed 44.5 points lower at 5812.9.
The top flight came within 80 points of the 6000 landmark on Monday, but the euphoria surrounding the telecoms sector was replaced by a slump in mining shares yesterday.
And today’s lacklustre session saw only 10 blue-chip stocks in positive territory, taking the shine off gains by ITV. The broadcaster rose 3% or 3.25p to 114p in the wake of a 42% hike in operating profits to £460m (€670m).
Investors also cheered a £300m (€437m) share buy-back and a higher dividend, although there remained concerns about the prospects for advertising revenues at at its flagship ITV1 channel.
The group has launched new channels and developed online operations as part of efforts to offset the pressure on ITV1.
Pharmaceutical companies were also on the front foot, with AstraZeneca up 69p to 2714p, GlaxoSmithKline 29p stronger at 1536p and Shire 7.5p ahead to 906.5p.
Oil stocks staged a slight recovery this afternoon after new data showed massive increases in US reserves. BP was up half a penny to 634p and Royal Dutch Shell lifted 14p to 1833p.
But there was gloom for much of the rest of the market as a string of companies paid dividends to shareholders.
Persimmon set the pace with a drop of 5% or 69p to 1332p, while miner Anglo American lost 60p to 1990p.
Other miners were also in retreat as the sector continued to come under pressure from weaker metal prices. Kazakhmys was off 30.5p to 825p, while Antofagasta lost 64p to 1957p.
Among other ex-dividend fallers, Lloyds TSB dipped 21.5p to 521.75p, while rival bank Royal Bank of Scotland and Standard Chartered suffered the same fate, sliding 53p to 1852p and 36p to 1413p respectively.
Elsewhere, doorstep lender Provident Financial gained 6% or 38.5p to 645.5p after it outlined plans to split off its international business for a separate listing on the stock exchange.
But it was beaten to the top of the FTSE 250 Index risers board by Travis Perkins as the builders’ merchant looked forward to a recovery for its Wickes DIY business over the second half of the year.
Annual profits were flat on last year and the stock rose 108p to 1606p – a gain of more than 7%.
Construction company Balfour Beatty was another stock to benefit from a positive reception to its annual results. With a record order book and £1 billion of preferred bids in the pipeline, shares jumped 10p to 379.75p.
The day’s biggest blue chip risers were ITV up 3.25p to 114p, AstraZeneca up 69p to 2714p, GlaxoSmithKline 29p stronger at 1536p, and Shire which cheered 7.5p to 906.5p.
The heaviest fallers were Persimmon off 69p to 1332p, International Power down 12.5p to 268.5p, Lloyds TSB 21.5p lower at 521.75p and PartyGaming down 5.25p to 127.75p.
