Footsie holding its own

The FTSE 100 Index was holding its own today despite financial services group Britannic delivering another blow to the insurance sector.

Britannic warned the fragile stock market conditions may force it to defer annual bonus payments on savings plans and scrap its dividend.

The FTSE 250 group’s shares dived by almost 44% and the warning cast a cloud over its blue-chip rivals with Prudential and Aviva both down.

But with little movement from telecoms and banking stocks, and a better start for retailers, the FTSE 100 was off just 8.4 points at 3996.5 at 9am.

High-street chemist Boots was up 12.5p at 586.5p and electrical chain Dixons was up 3p at 146p as the Christmas reporting season began in earnest.

Despite fears of a slowdown in consumer spending Majestic Wine said it had enjoyed like-for-like sales growth of 10.8% over the festive period.

Majestic climbed 10p to 515p and in the FTSE 100 others on the up included Marks & Spencer, ahead 2.25p at 318.25p, and Kingfisher, up 2.25p at 218p.

But insurers peppered the fallers’ board with Prudential down 17p at 443.5p, Aviva off 18p at 461.5p and Royal & Sun Alliance off 4p at 123.25p.

Britannic – which said its action was a “precautionary” step – was by far the highest faller on the FTSE 250 with a 146p fall to 181.5p.

Elsewhere in the top flight, Anglo-Australian mining group BHP Billiton was off almost 4% as it revealed its chief executive had stepped down.

Brian Gilbertson said his decision was in the “best interests” of the group but BHP Billiton fell 12.75p to 323.25p early on.