FTSE 100 close: Anglo-American down, Burberry up
The London market was slightly down today as figures from Goldman Sachs failed to inspire trans-Atlantic stocks.
The FTSE 100 closed 33.2 points down at 5,222.9 after Goldman Sachs revealed a jump in third-quarter profits to $3.03bn (£1.96bn).
Despite the 278% profit leap investors had perhaps been expecting more after JP Morgan's exceptionally good showing yesterday: the Dow Jones was 15.3 down at 10,000.5 at the London close.
The FTSE 100 has surged more than 51% from a six-year trough in March, but is still 3.3% below its level in mid-September 2008 before the collapse of Lehman Brothers.
Shares in J Sainsbury stood out by jumping amid market talk of renewed interest from the Qatari sovereign wealth fund.
The supermarket group leapt to the top of the risers' board with a 10% increase, ahead 31.4p to 342.5p, as traders cited rumours that the Qataris may be looking to increase their existing estimated 26% stake in the chain.
Miners fell as profit-takers moved in, led lower by Anglo American, off 95p at 2,216p, after rival Xstrata said it will not make a formal takeover offer. Xstrata was 21p off at 1,010p.
Oil stocks were among the leading losers after gains this week, with Cairn Energy 74p down at 2,976p, and Royal Dutch Shell B shares down 31p at 1,785p.
The Financial Times reported the government would not underwrite a planned rights issue by Lloyds Banking Group. And fund manager Rathbone Brothers said it was in talks with Lloyds about buying wealth management assets from Britain's largest mortgage lender.
Lloyds shares inched 1.65p higher at 91.41p and Rathbone shares were 15p up at 930p.
Retail chain Burberry was high on the risers board, up 1.95% or 11p to 576.5p, as investors continued to cheer yesterday's upbeat trading statement.
Model performance: Burberry's 'Snood'
In a busy session for updates in the FTSE 250 index, WH Smith rose 4% after it posted better-than-expected full-year profits of £81m and announced the return of £35m to shareholders. The stock, which has beaten an 18% retail sector rise in the past six months by surging 22%, was up 20.4p at 517.5p.
Mothercare shares were less popular today after it said total group sales including international business had risen 7%, helping to offset increases in costs and the impact of the weak pound on imports.
The babycare chain, which has seen its 17th quarter of growth in a row, said strong internet sales and the successful addition of Early Learning Centre ranges has led to a like-for-like UK sales increase of 4.1%. The shares fell 17p to 600p.
Seymour Pierce analyst Freddie George kept his 'sell' rating on the stock and told Reuters: 'We are warming to the international opportunity, which accounts for about 20% of trading profits, but we believe the potential has been fully factored into the share price. In addition, the UK business is now looking more mature.'
Drinks firm Britvic moved in the opposite direction, down 11.5p to 374.5p, as broker Shore Capital downgraded the stock in the wake of a 'slightly disappointing' fourth-quarter trading update.
Meanwhile citywire.co.uk revealed Caledonia investments has ramped its exposure to Rightmove, the UK's No.1 property listings website, from 4.88m shares to 6.01m. The shares fell 10.5p to 570.5p.
News of an investigation by the Office of Fair Trading into how companies use behavioural targeting to price products had implications for Phorm. It specialises in online behavioural technology. Its shares tanked 4% in early trading but steadily recovered throughout the day to rise 15p to 185p.
TOMORROW'S CITY DIARY
• Admiral, the group behind Elephant, Diamond and Confused.com, updates the market on trading tomorrow. Investors will be keen to hear how price comparison website Confused.com is faring.
• Wall Street titan Bank of America Merrill Lynch continues the reporting season for the US investment banks, with third-quarter figures..
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