Blue-chip shares slump dashes hopes of recovery

HOPES of a sustained recovery on the London market dwindled yesterday as blue-chip shares dipped further into negative territory.

Morning trading had seen the FTSE 100 Index move ahead after two consecutive days of falls.

But shares fell later, despite a modestly upbeat open on Wall Street, and the FTSE 100 ended 1.7 points adrift at 4026.9.

The mood remained cautious after Tuesday’s near 4% slump, which pushed the top-flight index to its lowest level for nearly a month and knocked billions from the value of shares.

Oil giant BP was weighing on the market after losing 16p at 451p, a 4% fall, but energy group International Power was the session’s biggest loser, off a hefty 16p at 112p.

ITV broadcaster Granada was another faller, 3p weaker at 76p, as was British Airways, which slipped 3%, off 4p at 135p.

Those making headway yesterday included tobacco giant Gallaher, which soared 36p at 670p, up 6%; Schroders, which gained 14p at 485p; and Argos-owner GUS, up 10p at 491p.

Back in the FTSE 100, the biggest risers were Gallaher, up 36p at 670p; Smith & Nephew, up 14p at 368p; Kingfisher, up 6p at 200p; and Dixons, up 4p at 160p.

The heaviest fallers were International Power, off 16p at 112p; EMI, off 10p at 164p; Exel, off 38p at 670p; and Granada, off 3p at 76p.