FTSE close: JP quake hits markets; JDW up

By Ed Monk for Thisismoney.co.uk
Updated: 12:10 EDT, 11 March 2011

17.05 (close)

Nerves: Global events have hurt confidence

The FTSE 100 Index set a new low for the year today after Japan's devastating earthquake and tsunami completed a grim week for world markets.

Major European insurers gave up gains secured earlier in the week as the quake, which measured 8.9 on the Richter scale, raised fears of more heavy catastrophe losses on top of those suffered in New Zealand last month.

With the escalating violence in Libya and Europe's sovereign debt crisis making investors increasingly risk-averse, the FTSE 100 Index finished the session 16.6 points lower at 5828.7 - the lowest level since December.

The Nikkei 225, which was still trading when the quake struck, finished 1.7% lower having been down by around 1% earlier in the session.

The only relief for traders came from Wall Street as the Dow Jones Industrial Average benefited from a stronger-than-expected report on retail sales.

The prospect of a short-term drop in demand for crude from Japan, the world's third-largest oil consumer, sent the price of oil below 100 US dollars for the first time this month.

The quake led to a knee-jerk drop in the yen but the Japanese currency steadied thanks to its status as a safe haven for international traders. Meanwhile, the pound was down against the dollar and euro.

One of the biggest falls in London came from FTSE 250 Index reinsurer Catlin Group, which dropped 4% or 16.3p to 349.8p. Sentiment was dented across the insurance sector, with RSA Insurance down 3.5p to 133p, Prudential off 14p to 721p and Legal & General 2.3p lower at 115.2p.

Elsewhere in London, shares in JD Sports Fashion jumped 5% after it said it was no longer interested in a takeover of ailing rival JJB Sports.

JD, which rose 47p to 930p, said it had not been possible to gain access to key information from JJB. Shares in JJB fell 1.5p to 13.5p as the move heaped pressure on the retailer to complete its ongoing restructuring.

Meanwhile, FirstGroup slumped 5% after the transport group said strong revenues growth at its UK rail business had been offset by continued tough trading for its American school bus operation.

Shares were 12.8p lower at 347.4p.

JD Wetherspoon shares were slightly higher after results showed an 11% fall in half-year profits at £32.2m, close to market expectations.

The pub group said it remained cautious about costs but with sales still rising Wetherspoon shares remained near to their opening mark, up 2.8p to 433.7p.

Luxury goods firm Mulberry continued to soar, up 189.5p to 1409.5p, after its second upgrade to profits and sales expectations this year. The stock has enjoyed a spectacular run in recent months having been 200p a year ago.

The biggest FTSE 100 risers were BG Group up 41p at 1460p, Tullow Oil ahead 37p at 1388p, Antofagasta up 22p at 1339p and Cairn Energy ahead 6.5p at 429.6p.

The biggest fallers were Experian down 24p at 740p, Carnival off 72p at 2600p, RSA Insurance down 3.5p at 133p and Capita Group off 19.5p at 761p.

15.25: With the end of a pretty ordinary week in sight, the FTSE 100 is 19.78 points lower at 5825.51.

Here's an interesting read on whether UK shares are undervalued.

14.45:

On Wall Street, the Dow Jones opened lower before recovering.

In early trading in New York the Dow is flat - 3.86 points lower at 11,980.75.

Back in london, the FTSE 100 is 22.33 points lower at 5822.96.

13.30:

At lunchtime, the FTSE 100 is 9.91 points lower at 5835.38.

The devastation caused by the earthquake in Japan hit markets in early trading but confidence has returned as the day has gone on.

Shares in the European insurance sector were affected by events in Asia amid fears that reinsurers face another round of sizeable catastrophe losses.

The quake, which measured 8.9 on the Richter scale, occurred just before the close of trading in Tokyo and led to a further sell-off for the Nikkei 225 as it finished 1.7% down at a five-week low.

One of the biggest falls in London came from reinsurer Catlin Group, which dropped 4% or 16.4p to 349.7p. Sentiment was dented across the insurance sector, with RSA Insurance down 2.7p to 133.8p, Prudential off 13p to 722p and Legal & General down 1.8p at 115.7p.

Elsewhere in London, shares in JD Sports Fashion jumped 5% after it said it was no longer interested in a takeover of ailing rival JJB Sports.

JD, which rose 47.25p to 930.25p, said it had not been possible to gain access to key information from JJB. Shares in JJB fell 1.4p to 13.6p as the move heaped pressure on the retailer to complete its ongoing restructuring.

We've got more on that here.

Luxury goods firm Mulberry continued to soar, up 153p to 1374p, after its second upgrade to profits and sales expectations this year. Here's the full report.

12.05:

At noon, the Footsie is still lower - 28.08 points down at 5817.21.

Another firm reporting today is JD Wetherspoon. The firm said like-for-like sales rose 2.3% in its half year to January 23, with growth accelerating to 2.8% in the following six weeks.

It also warned that drinks prices will have to rise. Shares in the pub group were 1.7% higher - up 7.6p to 438.5p - today.

Here's more.

11.00:

A brief recovery for the Footsie has been halted and shares are on a downward path today, 38.4 points lower at 5806.85.

In the corporate diary, an update from FirstGroup has sppoked investors in the transport group. The firm reported tough times for its US school bus division and the shares are 5.4% lower at 340.90p.

Here's more on that.

09.45:

The FTSE 100 plunged on news of a massive earthquake off the coast of Japan before paring losses, while JD Wetherspoon gained on higher profits.

Asian shares finished sharply lower today after a devastating earthquake struck Japan at the end of a bleak week for world markets.

The quake, which measured 8.9 on the Richter scale, occurred just before the close of trading in Tokyo and prompted a further sell-off as the Nikkei 225 finished 1.7% down at a five-week low.

It had earlier been 1% lower after the Dow Jones Industrial Average suffered its biggest one-day drop since August and China reported unexpectedly high inflation.

The FTSE 100 Index, which is now below its opening mark for the year, fell by more than 40 points at one stage before recovering to stand 17.5 points lower at 5827.2.

Escalating violence in Libya and a downgrade of Spain's credit rating caused markets to fall heavily yesterday.

In London, shares in JD Wetherspoon were slightly higher after results showing an 11% fall in half-year profits at £32.2 million came in close to market expectations. The pub group said it remained cautious about costs but with sales still rising Wetherspoon shares lifted 3.2p to 434.15p.

Elsewhere, FirstGroup was among the fallers after the transport group said strong revenues growth at its UK rail business had been offset by tough trading for its American school transport operation.

Shares were 15.4p lower at 344.8p.