Footsie hovers around opening mark

The FTSE 100 Index is up 2.7 points at 5244.7 after going up at first and then falling 23 points.

Sentiment has not been helped by corporate news with Hays off 9% - down 19¾p at 190¼p - in the wake of its interim results showing a dip in profits.

United Business Media has fallen 7% - off 42½p to 557½p - after reporting its operating profits had halved.

A clutch of other media stocks eased, with Granada 8¼p cheaper at 121¾p, Pearson down 32p at 844p and WPP off 11½p at 774p.

On the upside, Logica has staged a rally in a an attempt to avoid relegation from the blue-chip chart. Shares are ahead 5% - up 22p at 449p - ahead of tonight's FTSE 100 Index reshuffle.

British Airways, also on the fringes of the relegation zone, has gained 8¼p at 238¼p after a broker upgrade.

Pace Micro has tumbled 55% - off 168¼p at 135¾p - after it cut sales forecasts.

And Britain's largest coal producer UK Coal gained 5p to 86½p despite reporting losses as investors were encourages by its cost-cutting programme.

Britannic has also gained 17p at 671p after it saying it would consider merger talks to take advantage of changing market conditions.