FTSE close: Pru, M&S, BT down; Easyjet gains

 

17.15 (close)

Dealers monitor their screens on the trading floor of IG Index in London

New week: Traders will look to US for clues on shares.

Hopes for further economy-boosting measures from the US Federal Reserve mounted today, sending the London market higher.

The FTSE 100 closed 14.8 points up at 5672.4 after expectations for more action from the Fed to stimulate the recovery emerged.

Dismal unemployment figures on Friday have been seen by markets as the green light for the Fed to try and rejuvenate the US economy with more quantitative easing at its next meeting in early November.

But any further asset purchase programme in the US would put more dollars into circulation and cause its value to decline.

Despite this negative sentiment, the pound fell against the greenback at 1.59. But sterling was up against the euro at 1.14.

Among Footsie stocks, blue-chip heavyweights BP, Prudential, Marks & Spencer and BT featured prominently on the fallers board after a slew of broker downgrades.

Prudential fell 8p to 628.5p after JP Morgan Cazenove downgraded the stock from neutral to underweight.

Bernstein Research also downgraded BT and cut its target price following a decent run for the stock, which stood 2.1p lower at 146.9p.

Other fallers included oil giant BP, which dropped 3.5p to 432.6p after Royal Bank of Scotland said investors should expect an initially conservative approach to dividends should the payouts return early next year.

Retailer Marks & Spencer fell 5.3p to 405.7p as HSBC worried about the trading outlook and said much of the good news found in last week's stronger than expected trading update was already factored into the share price.

Oil services group Petrofac led the market higher, after a lucrative contract win worth more than $250m (£156.8m).

The company announced it was to take over operational responsibility and facilities management of the Sajaa gas plant, in Sharjah, in the United Arab Emirates (UAE) in a five year deal. Shares closed 35p higher at 1428p.

In a quiet session for corporate news, easyJet was in focus after it announced a deal to end its long-running row with founder Sir Stelios Haji-Ioannou and secure its use of the 'easy' brand.

It will pay Sir Stelios 0.25% of its revenues each year, fixed at £3.9m and £4.95m for the first two years, plus another £300,000 annually. Shares closed 2.7p higher at 454.3p.

Other risers in the FTSE 250 Index included bookmakers Ladbrokes after it said operating profits more than doubled in the third quarter. It benefited from the tail-end of the World Cup and a more favourable run of results at the start of the English football season. Shares were 3.1p higher at 141.1p.

Wickes owner Travis Perkins fell 1% after it reported a 6% rise in turnover but said growth rates had slowed at its builders' merchant business in recent weeks. Shares were 9.5p lower at 854.5p.

Elsewhere, win-a-supercar firm Best of the Best slumped by nearly 50%, down 12.5p to 17p, after BAA ended the firm's contract to display cars at its airport terminals.

The biggest Footsie risers were Man Group up 6.6p at 257p, Petrofac ahead 35p at 1428p, Weir Group up 37p at 1580p and Schroders ahead 32p at 1488p.

The biggest Footsie fallers were Autonomy Corporation down 35p at 1485p, Reckitt Benckiser Group off 54p at 3403p, BT Group down 2.1p at 146.9p and Xstrata off 17.5p at 1278.5p.

16.15: London's FTSE 100 rose 19.6 points to 5,677.2 on expectations for more action from the Fed to stimulate the recovery, while the Dow Jones rose further above the 11,000 mark, up just 0.6 to 11.007.1.

But the dollar suffered as any further asset purchase programme would put more dollars into circulation and cause its value to decline. The greenback has fallen to 15-year lows against the Japanese yen, although it held firm against the pound and euro today.

Win-a-supercar firm Best of the Best slumped by nearly 50%, down 14.5p to 15p, after BAA ended the firm's contract to display cars at its airport terminals.

12.55:

Broker downgrades for blue-chip heavyweights BP, Prudential, Marks & Spencer and BT have dragged the quartet lower today.

They all featured prominently on the fallers board but failed to disrupt a solid session for the London market. The Footsie is 16.8 points up on the session at 5674.7.

Prudential shares led the fallers after JP Morgan Cazenove downgraded the stock from neutral to underweight, prompting the stock to fall 14p to 622.5p.

Bernstein Research also downgraded BT and cut its target price following a decent run for the stock, which stood 1.9p lower at 147.1p.

Other fallers included oil giant BP, which dropped 3.9p to 431.95p after Royal Bank of Scotland said investors should expect an initially conservative approach to dividends should the payouts return early next year.

Retailer Marks & Spencer fell 4.8p to 406.2p after HSBC worried about the trading outlook and said much of the good news found in last week's stronger than expected trading update was already factored into the share price.

11.15:

The two notable names reporting today have both seen shares rise.

Ladbrokes has enjoyed the football results so far this season, and its shares have climbed 4p to 142p after posting a profits rise.

Low-cost carrier easyJet will keep its 'easy' brand, but its early gains were reined in slightly. It is now 7.4p up at 459p.

10.00:

The FTSE 100 was pushed higher in thin trading today, helped by signs that the US may embark on another stimulus package.

The Footsie was 10.54 points higher at 5668.15 in early trading. Some 67 of the 100 blue chips companies were in positive territory.

Expectations that the US Federal Reserve will take action to prevent the American economy from slipping back into recession helped London shares.

Dismal unemployment figures on Friday were seen by markets as the green light for the Fed to try and rejuvenate the economy with more quantitative easing at its next meeting in early November.

In a quiet session for corporate news, shares in easyJet were 3% higher - up 15.8p to 467.4p - after it announced a deal to end its long-running row with founder Sir Stelios Haji-Ioannou and secure its use of the 'easy' brand.

It will pay Sir Stelios 0.25% of its revenues each year, fixed at £3.9m and £4.95m for the first two years, plus another £300,000 annually.

Other risers in the FTSE 250 Index included bookmakers Ladbrokes after it said operating profits more than doubled in the third quarter. It benefited from the tail-end of the World Cup and a more favourable run of results at the start of the English football season. Shares were 4p higher at 142p.

In currency markets, the pound fell back from it's eight-month high against the dollar, with expectations raised that Consumer Price Index inflation will remain above target when official figures are published later this week.

Sterling this morning was at $1.5933, compared to $1.5824 at the end of Friday. Against the euro, the pound was at €1.1435 compared to €1.1357 on Friday.

US markets are shut today, due to the Columbus Day public holiday.

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