Thin trade causes FTSE drop

The FTSE 100 Index is off 11.7 points at 3941.7 as political concerns weakened trading and kept volumes thin.

But AstraZeneca has soared 267p to 2335p, 13% gain, after a US court curbed generic copies of its blockbuster ulcer drug Prilosec.

The unexpected victory helped the sector and GlaxoSmithKline has also moved ahead, up 47p at 1350p.

Supermarkets are among the heavy fallers after a 37% slump by FTSE 250 firm Somerfield. Chief executive Alan Smith is leaving and the firm warned final profits were only likely to meet last year's level. Shares have tumbled 35.5p to 59.5p.

Among the blue chips, Tesco is down 6.5p at 200.5p, Safeway is off 8.5p at 195.5p and J Sainsbury has lost 10.5p at 271.5p.

Financial and insurance stocks are adding to the subdued mood as investors fret over the economic climate and recent equity slides. Barclays has shed 13.25p at 413.5p, Royal Bank of Scotland has lost 44p at 1374p, Schroders is 15p weaker at 485p, Aviva is off 15p at 425p and Legal & General has eased 6.75p at 100.25p.

But Abbey National has gained 3p to 625p despite reports it will again reject Bank of Ireland's merger proposals.

Among smaller stocks, Burberry has gained 6p at 202p after first-half sales beat many analysts' expectations.

But Strongbow maker HP Bulmer has dived 65.5p to 130p, a 34% slump, after warning profits would be hit by tough trading conditions and a series of one-off costs.