Footsie falls slightly in subdued start to week

The Footsie index of 100 leading stocks is down 7.1 points in subdued trading, standing at 5594.4 at mid-morning.

Supermarkets are in the spotlight, with shares in the UK's number two grocer Sainsbury's rising by 2% or 8¾p to 399p after it said like-for-like sales in the first three months of the year had risen by 4.8%.

Shares in Tesco, which is expected to report profits of more than £1bn for the first time tomorrow, is up 2¾p to 264¾p; and rival Safeway is up 8¾p to 314¾p.

Among the fallers are chip designer ARM Holdings, off 28p at 228p ahead of its first quarter figures on Wednesday; software firm Misys, 23p lower at 392p; and Sage, 7p lower at 227½p.

Shares in telecoms groups are also being sold, with Spirent down 26p at 309p; Energis off 7½p at 254p; and Colt Telecom down 17p at 613p.

Marconi is down 13p at 312p following speculation it will announce 3,000 job cuts this week.

Marks & Spencer shares are down 3% or 8¾p at 254¼p amid speculation that full-year profits could come in below hopes.

But electricity company PowerGen has seen its share price rise by 11p to 717p after agreeing a near £10bn takeover deal from German utility group E.On.

Oil firms are also having a good day, with BP Amoco rising 11p to 591p; and Shell up 12½p at 554½p.

Fashion retailer Oasis is up 7% or 4½p at 70p after saying it remains the subject of takeover talks. The group also revealed it had seen a disappointing year in which operating profits slid 26%, but sales had perked up recently.