Iran nuclear project pushes London market into red
The London market sank into the red today after the United Nations said Iran had failed to suspend its nuclear fuel programme before the deadline.
The uncertainty saw a brisk sell-off in London just before the close of trading as investors braced themselves for days of uncertainty.
It drove the FTSE 100 Index 23.2 points lower to 5906.1 in a session earlier dominated by falling Guinness sales at an otherwise profitable Diageo.
Diageo shares slumped nearly 3% or 24p to 935p despite a strong set of results elsewhere in the company, which also owns Captain Morgan, Johnnie Walker, Smirnoff and Jose Cuervo.
The fall came even though it met City expectations with an 11% rise in profits to £2.1 billion. The results were tinged by a challenging Irish beer market where Guinness sales slumped 3%.
Also on the slide were a string of insurance firms after strong gains yesterday. Legal & General fell 2p to 131.5p and it was followed down by Aviva - off 6.5p to 738p – and Prudential, which lost 4p to 589.5p.
Lloyds TSB led the banking sector down with losses of 5.5p to 521.5p while Halifax and Bank of Scotland owner HBOS was 9.5p lower at 1003p.
But going in the opposite direction was cruise firm Carnival which moved towards the top of the risers board with a gain of 63p to 2252p – nearly 3%- after Morgan Stanley cut its price target but said that although in the short term news remains negative it believes this is priced in.
And BP was in good cheer after an uncertain few days caused by weak oil prices and news of an investigation into commodity trading in the US. Shares were up 5p to 597p today, although rival Royal Dutch Shell failed to make headway with losses of 18p to 1880p.
Market rumours suggesting Scottish Power could be the subject of an approach from Germany’s RWE caused its shares to spark in early trading but the momentum was not maintained and the stock stood 5p lower at 620.5p.
Shares in the mining sector also lost value despite a positive start. Anglo American was the day’s biggest faller – off 60p to 2272p – while Kazakhmys slipped 18p to 1225p and BHP Billiton lost 10p to 1001. Antofagasta, however, gained 4% or 18p to 465.5p.
Elsewhere, a move by Las Vegas casino giant Harrah’s Entertainment for London Clubs International caused shares in rival Stanley Leisure to jump 38p to 656.5p. Stanley had been working on a merger with LCI, but it could now become a bid target for Harrah’s despite reports that the US firm was not interested. LCI surged 34%, or 33.75p to 132.5p.
The day’s biggest blue chip risers were Antofagasta up 18p to 465.5p, Cairn Energy up 65p to 2132p, Carnival up 63p to 2253p and International Power which gained 3.5p to 317.5p.
The heaviest fallers were Anglo American down 60p to 2272p, Diageo off 24p to 935p, Alliance Boots 15p weaker at 771p and Shire down 16.5p to 892p.
