Footsie falters in subdued trading

The Footsie index of 100 leading stocks has fallen by 12.1 points in subdued trading to stand at 5459.8 by lunchtime

Woolworths is making a better-than-expected return to the London market after being demerged by B&Q and Comet owner Kingfisher, seeing its share price hit 31¼p after opening at 25p.

The rise is better than most analysts had predicted, although at a discount to earlier hopes of 40p-a-share, and values the chain at around £400m.

By contrast, shares in Kingfisher have slipped by 1¾p to 377½p, while other retailers on the way down include Boots, off 2½p at 692p.

Tech shares are pulling the market lower, with computer services group CMG off 7% or 17p to 224¾p due to concerns about its interim results, which are due out tomorrow, and a downgrade by City broker JP Morgan.

Logica has dropped 35p to 705p; Electrocomponents is down 28p to 527p; while software group Misys has fallen by 10p to 334¾p.

Telecoms stocks are providing some upward momentum, with Vodafone up ¾p to 134¾p; Cable & Wireless edging up 3p to 340p; Marconi up ¼p to 63½p; and BT rising 11p to 457p.

Housebuilder Persimmon is up 6p to 390p after reporting a strong jump in interim profits - boosted by the buoyant housing market and its acquisition earlier this year of Beazer. Outsourcing services group Bunzl is up 15½p to 449½p after unveiling a 12% rise in first-half profits.

However, tea and coffee retailer Whittards of Chelsea is down 10% or 3p to 27½p after calling off takeover talks, reporting widening full-year pre-tax losses and appointing a new chief executive.

Shares in business and IT consultancy Terence Chapman are down by 21% or 10½p to 39p after it issued its third profit warning in five months. It said weaker market conditions and the cancellation of a number of projects meant full-year profits would fall 'substantially' below City hopes.