FTSE close: Lloyds, Capita up; Antofagasta down

 

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Wednesday: Ex-dividend factors will trim 0.4 points off the FTSE

Another session dominated by fears over the global recovery left the FTSE 100 Index deep in negative territory today, despite a rally for oil stocks after a surprise decision by Opec not to increase oil production.

The FTSE 100 Index finished 55.8 points lower at 5808.9 as comments from Federal Reserve chairman Ben Bernanke on Tuesday night had a detrimental effect on world markets.

Mr Bernanke admitted the US recovery was taking time but failed to signal further monetary policy action, despite the recent weaker economic data.

The bearish mood was also driven by a fresh warning from Moody's that the UK could lose its cherished triple-A credit rating if economic growth remains weak and the coalition government softens its fiscal consolidation targets.

While the message from Moody's was not new, the comments added to nerves in currency markets as the pound slipped against dollar to stand at 1.63.

A late recovery meant sterling was slightly higher on the euro at 1.12. The global economic fears caused mining shares to slump, with Antofagasta at the top of the fallers board after dropping 64p to 1222.5p.

But the announcement from Opec caused oil prices, which had slipped in early trading, to rebound above the 100 US dollar a barrel mark.

As a result, Royal Dutch Shell reversed its earlier falls to stand 3.5p higher at 2136p, while BP pared much of its earlier losses, and was off 4p to 444.15p.

Pollution filter and metal refiner Johnson Matthey was near the top of the fallers board with a decline of 71p to 1952p, a drop of 3%.

Other fallers included Primark owner Associated British Foods, which declined 25p to 1044p after privately-owned rival New Look delivered a grim full-year trading update with operating profits down 40% to £98m.

There was better news from Punch Taverns, which said the recent hot weather and its refurbishment programme had helped boost trading.

With its managed estate reporting a 7.3% rise in like-for-like sales in recent weeks, shares in the FTSE 250 Index company were 4.75p higher at 74.95p, a gain of 7%.

The update failed to lift rival Mitchells & Butlers, which lost some of the gains seen yesterday in the wake of speculation that shareholders including billionaire investor Joe Lewis could be plotting a full takeover bid.

Shares in the Harvester and All Bar One company rose by around 4% yesterday but were off 4.2p at 327.7p today.

In other corporate news, shares in engineering conglomerate Smiths were nearly 2% lower after the company warned of pressure on margins at its airports-based detection business.

While the company said overall trading remained in line with expectations, shares fell 24p to 1177p.

The biggest FTSE 100 risers were Lloyds Banking Group up 1.075p to 48.7p, Capita ahead 4.5p at 742p, Barclays up 0.6p at 263.15p and National Grid ahead 1p at 594.5p.

The biggest fallers were Antofagasta down 64p at 1226p, Johnson Matthey off 71p at 1952p, Kazakhmys down 42p at 1229p and Essar Energy off 14.2p at 420.3p.

15.50: The Dow Jones is trading 17.5 points lower at 12,053.3 as it racks up losses for the sixth day in a row.

The FTSE 100 remains in the red as the end of the session approaches - it's down 48.9 points at 5,815.7.

We have an update on beleaguered Southern Cross, which has announced plans to shed up to 3,000 jobs as part of an overhaul of operations at its 750 care homes.

The firm's shares are up 0.35p at 6p today.

13.45:

The FTSE 100 is 57.5 points lower at 5,807.3, and futures trading points to another downward lurch on the Dow Jones later too.

US investors are bracing for publication of the Federal Reserve's June Beige Book, a report on economic conditions, and oil inventory data that is expected to show a fall in stocks of crude.

Brent crude is trading at just above $115 today. Meanwhile, gold was fixed this morning at $1,535.50 an ounce compared with $1,545 at the previous close.

We have more on Punch Taverns, which announced sales were on the rise and its demerger was on track for the end of the summer.

The pub operator reported a 7.3% rise in like-for-like sales at its managed pubs in the 12 weeks to May 28, an improvement on the 4.9% increase over the previous half-year.

Its shares are up 5.05p at 75.25p.

11.05:

In corporate news today, fashion retailer New Look has blamed a 7.1% dive in annual UK sales on internal upheaval and a 'harsh and deteriorating' climate for shoppers.

The like-for-like sales figure, which covers performance at its 600-strong UK chain in the year to March 26, contrasts with a 5% rise the year before.

Here's more.

Meanwhile, the FTSE 100 is stuck 48.2 points lower at 5816.45.

10.15:

The pound is at its weakest against the euro in a month after a leading credit ratings agency warned the UK was at risk of losing its top-notch ranking.

The pound fell blow €1.12 (89.5p to the euro) for the first time since early May and slid against the dollar after a Moddy's analyst said the UK could lose its AAA rating if growth remained weak and the government failed to meet its budget deficit reduction targets.

We have more here.

The FTSE 100 is down 47.3 points at 5,817.4.

09.20:

The FTSE 100 dipped today on disappointment at a lack of action to boost the US economy, while Primark owner Associated British Foods fell after rival New Look saw trading fall.

The blue-chip index was 37.4 points lower at 5827.25 in early trading.

European markets remained in the doldrums today after Federal Reserve chairman Ben Bernanke failed to signal further help for the ailing US economy.

With Mr Bernanke sticking by current monetary policy despite recent weaker economic data, the Dow Jones Industrial Average suffered another lacklustre session the day after slipping to its lowest level since mid-March.

Leading Asian markets followed suit with declines of around 1%, while the FTSE 100 Index was off 33.4 points at 5831.3.

A fall in the price of New York-listed crude oil, which now stands at below $100 a barrel, added pressure as a number of commodity-linked stocks declined. They included exploration firm BG Group, which dropped 21.25p to 1343.75p and Antofagasta after a fall of 20p to 1270p.

Other fallers included Primark owner Associated British Foods, which declined 15p to 1054p after privately-owned rival New Look delivered a grim full-year trading update with operating profits down 40% to £98 million.

There was better news from Punch Taverns, which said the recent hot weather and its refurbishment programme had helped boost trading.

With its managed estate reporting a 7.3% rise in like-for-like sales in recent weeks, shares in the FTSE 250 Index company were 4.55p higher at 74.75p, a gain of 6%.

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