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.
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