FTSE close: Retailers lead falls; miners up

 

17.00 (close)

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

Slow day: Shares will hover around the 6,000 mark.

The FTSE 100 showed little appetite for finishing the year above 6,000 today, despite some better economic news from the United States.

The last full business session of the year saw the Footsie drop 25.3 points to 5971, but the top flight remains on track to rise by more than 10% across 2010 after a rally in December capped a strong second half to the year.

The top-tier closed above the 6,000 level for the first time since June 2008 on Christmas Eve as thin trading volumes and a Santa rally helped blue-chips move higher.

But with half a session of the year to go, the festive charge looks to have run its course judging by today's decline, which was triggered by a disappointing session for Asian markets overnight.

Japan's Nikkei 225 fell 1.1% as investors sold export-based stocks due to the strengthening of the yen against the dollar, a factor which cuts the value of profits and makes products less competitive abroad.

Better-than-expected news on US employment, manufacturing and housing should have triggered a fightback, but the Dow Jones Industrial Average was lower at London's close as investors locked in profits after the recent strong run.

The impact of the economic data failed to improve the position of the US dollar against the euro, which was also around 1% stronger against the pound during a much-needed end of year rally for the single currency. Sterling was also weaker against the dollar.

Heavyweights such as BP were among those lower in London today after a drop of 2.15p to 471.2p. Mobile phone group Vodafone fell 1.85p to 167p and BT Group dropped 1.2p to 183.5p.

Silver miner Fresnillo was top of the FTSE 100 pile after lifting 42p to 1661p, a gain of more than 2% during an upbeat session for the mining sector. Other risers included Rio Tinto with a gain of 31.5p to 4584p and Xstrata 10.5p higher at 1535p.

But retailers experienced a disappointing session despite more evidence that the sector held its own during a snow-impacted run-up to Christmas.

This was underlined by Asda as it revealed it had maintained sales momentum over its most recent trading period. The fortnight leading up to Christmas saw 11 stores record sales of more than £7m, compared with the nine that passed the figure in 2009.

Tesco was down 5.9p at 429.55p, Sainsbury's eased 3.2p to 380.1p and Morrisons slipped 3.8p to 267.4p.

Next, which is due to publish trading figures on Wednesday at the start of the sector's Christmas reporting season, fell 12p to 1994p. Marks & Spencer was 2.6p lower at 373.2p.

The biggest Footsie risers were Fresnillo up 42p at 1661p, Shire ahead 17p at 1559p, Petrofac up 17p at 1601p and Cairn Energy ahead 3.8p at 422.7p.

The biggest fallers were Randgold Resources down 130p at 5315p, Aggreko off 31p at 1496p, Prudential down 13p at 668p and BAE Systems off 5.3p at 330.7p.

15.30: Lower than expected US jobless claims failed to lift the Dow Jones, which was 16.16 points lower at 11,569.22 in early trading. Data revealing slowing growth in Chinese manufacturing activity was a drag on sentiment.

The FTSE 100 has lurched downward as it approaches today's close, losing 24.12 points to trade at 5,972.24.

15.00:

The Footsie has tip-toed above 6,000 at times today, but is failing to make it stick.

The FTSE 100 is currently 4.79 points lower at 5991.57.

13.50:

The Dow Jones in New York is set to open moderately lower, according to futures trading. US investors will be poring over the latest umemployment data, with weekly jobless claims expected to show a fall.

Manufacturing and pending homes sales figures are also scheduled for release.

The FTSE 100 is still in the doldrums, down 10.50 points at 5,985.86.

12.15:

At lunchtime, the FTSE 100 is 11.6 points lower at 5984.74.

Retailers are having a disappointing session despite evidence that the sector held its own during a snow-impacted run-up to Christmas.

Asda today revealed it had maintained sales momentum over the most recent trading period. The fortnight leading up to Christmas saw 11 stores record sales of more than £7m, compared with the nine that passed the figure in 2009.

We've got more on Asda here.

Tesco was flat at 435.45p, Sainsbury's eased 0.6p to 382.7p and Morrisons slipped 2.5p to 268.7p.

11.15:

Are we going to end the year above 6,000 after all? The FTSE 100 is certainly trying, up 2.4 points at 5998.77.

And as the end of the year approaches, we've brought together some round-ups of 2010, and some crystal ball gazing for 2011 as well...

›› FTSE 2010: Best and worst performing shares

›› Midas: 2010 share tip winners and losers

›› Stock market predictions and tips for 2011

›› Sterling set for steady gains in 2011

10.00:

The FTSE 100 slipped back today with most sectors falling in thin trading, but with banks rallying after falls yesterday.

The Footsie is struggling to finish 2010 above the 6,000 mark. The top tier closed above the 6,000 level for the first time since June 2008 on Christmas Eve as a 'Santa rally' helped blue chips move higher.

Today, the last full day of trading before the end of the year, the FTSE 100 was 6.69 points lower at 5989.67.

Heavyweights such as BP are among those lower today. The oil giant is 2.55p lower at 470.8p.

Banks and retailers did their best to prop up the top flight as Barclays rose 2.15p to 266.85p, part-nationalised Lloyds Banking Group added 0.2p to 67.8p and Tesco cheered 1.1p to 436.5p.

Silver miner Fresnillo was top of the FTSE 100 pile after lifting 20p to 1639p, a gain of more than 1%.

Randgold Resources, which climbed yesterday on the back off a rise in the gold price, has fallen back. It leads the losers, 95p lower at 5,350p.

In currency, the pound is at $1.5491 compared to $1.5464 at the previous close. Against the euro, the pound is €1.1699 compared to €1.1723 at the previous close.