FTSE 100 close: Hammerson, LandSec down
London shares paused for breath today after the Footsie's 1.6% jump yesterday.
A smaller decline than first feared in UK output between April and June was tempered by figures casting doubts over the impact of the Bank of England's efforts to boost the money supply and aid the economy.
The FTSE 100 index - which closed an impressive 1.6% higher yesterday - closed 5.9 points lower today at 5,159.7, with futures markets also signalling a pause for breath on Wall Street after strong gains.
'After the storming day yesterday, markets are prone to sell off, particularly with so much uncertainty,' said Peter Dixon, economist at Commerzbank.
The Footsie is still up 16.3% this year, and has soared 49% since touching a six-year trough in March.
Property stocks were the heaviest losers today after Credit Suisse cut the sector to 'benchmark' from 'overweight'. Hammerson was 6.5p down at 403p, Land Securities 18.5p off at 638p and British Land 4.8p weaker on 482p.
Miners were also weaker, weighed by weaker copper and aluminium prices: Randgold Resources was 73p down at 4,4320p and Anglo American was 28.5p off at 2,043.5p.
Banks dominated the risers' board as investors were cheered by BNP Paribas, which has joined a recent European rush to repay the government for its financial support during the credit crisis, launching a €4.3bn capital increase.
Royal Bank of Scotland up 0.4p at 52p and Lloyds Banking Group ahead 1.1p at 104.85p.
'The upward trend is still intact, and I think the fact that (BNP Paribas) is raising $6.3bn to help repay the French government is an indication of the strength of banks' underlying fundamentals compared to their position a year ago,' Dixon said.
Insurer Aviva added 12.4p to 431.2p, while rumours that Legal & General could be a bid target for investment vehicle Resolution lifted its shares 3.75p to 82.75p. Standard Life was 1.5p higher at 257p and Prudential rose 12.5p to 598.5p.
Catering firm Compass was also strong, gaining 12.8p to 372.4p after revealing it had improved margins in the fourth quarter. The world's biggest caterer said it expected to increase full-year earnings per share by 14% as new business wins, cost cuts and a weak British pound helped maintain its growth.
But holiday group TUI Travel was down in early trading after announcing a 13% fall in winter sales in its core UK market and it detailed a £440m fundraising plan to repay loans to its German parent group. It regained ground throughout the day to close flat at 266p.
Pub firm Enterprise Inns fell in the FTSE 250, down 1.3p to 133.6p despite news it had fewer empty pubs amid signs of improved trading conditions for the struggling sector.
But Irn-Bru firm AG Barr was the second tier's top performer after boosting first-half profits by 20% in a period of 'continued economic uncertainty'. Shares rose nearly 11.5% or 85.5p to 835p.]
Other risers included Clover firm Dairy Crest, which climbed 23.2p to 400p on the back of a steady trading update.
In small caps, shares in Davenham slumped 13.75% after the small business lender reported a swing to a full-year loss of £55.4m, down from a £12.7m profit a year previously.
Panmure Gordon said property-related impairments were 'higher than expected'. The broker, which rates the company as 'sell', says: 'We see a risk that if impairments don't improve significantly, the remaining shareholders' equity of £11m could dwindle.'
Davenham says it suffered an 'unprecedented' rise in bad property loans, pushing the total impairment charge to £49.2m from £3.8m a year earlier.
Most watched Money videos
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- Fiat pledges to cease grey car production as they launch new EV
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Mercedes has finally unveiled its new electric G-Class
- How to invest for income and growth: SAINTS' James Dow
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- Land Rover unveil newest all-electric Range Rover SUV
- Blue Whale fund manager on the best of the Magnificent 7
- Mini Cooper SE: The British icon gets an all-electric makeover
- Mini celebrates the release of brand new all-electric car Mini Aceman
- Bailey pulls his punches on interest rates yet...
- MARKET REPORT: North Sea giant Harbour closes in on £9bn...
- Ford confirms it will cull another of its best-selling...
- Watches of Switzerland buys Italy's Roberto Coin Inc for...
- ITV hit by Hollywood strikes as it pins hopes on Euros...
- BBVA goes directly to shareholders as it steps up bid for...
- Bank of England paves way for Britain to cut interest...
- BAE Systems tools-up for growth as Britain plots defence...
- Avon Protection handed £38m gas mask contract by MoD
- Takeover target Wood Group hit by slump in revenues as...
- Used car sales hit a five-year high as fresh supply of...
- Mortgage rates are climbing again - should we be worried?...
- Why we need more than a British Isa to move the dial on...
- BUSINESS LIVE: BoE base rate decision; ITV eyes ad market...
- ITV hopes for summer ad boom as it continues to reel from...
- Vodafone told to boost security as £15bn Three merger is...
- Cameron left red-faced as Greensill sues Government over...
- Two in five believe ovens will become obsolete as the air...