FTSE ends week in lacklustre fashion

Investors were spared more stock market turbulence today after a rollercoaster week ended in lacklustre fashion.

The FTSE 100 Index struggled for direction and remained stuck in a narrow trading range, eventually closing up 2.2 points at 3599.2.

The City entered the final session of the week on the back of an 80 point slump but at least held firm despite continued uncertainty about Iraq and the shock of the Bank of England’s interest rate cut yesterday.

Figures showing a further decline in manufacturing output again threatened to upset the Footsie but the market was little moved by the news.

Unemployment numbers in the US provided another test but Wall Street shares were cheered by the data and the Dow Jones Industrial Average rose for a time before easing back towards London’s close.

Heavyweight oil stock Shell proved to be a drag on the Footsie after it disappointed analysts with its annual results announcement yesterday.

Shell was 1% lower – off 3.75p at 356.25p – while rival BP also eased back ahead of its own results on Tuesday, closing down 3.5p at 379p.

Like Shell, chemicals giant ICI continued to suffer from an announcement made in the previous session.

ICI, which fell 7% yesterday after announcing flat profits and warning that some of its planned cost reductions would be delayed, was off another 4%, or 7p, to 183p.

And three companies at risk of having their credit ratings reduced by Standard & Poor’s following a review of their pension liabilities were under pressure.

In the wake of the report Rolls-Royce fell 4.5p to 88p, engineering group GKN eased 2.5p to 179p and FTSE 250 Index glassmaker Pilkington slipped 4.25p to 59.25p.

And with the manufacturing sector under pressure after gloomy output figures, industrial products company Invensys fell 2.75p to 42.75p.

The session was a quiet one for major corporate news but two FTSE 250 Index companies sparkled after issuing trading updates.

Computer services group LogicaCMG cheered investors by announcing it remained on track to achieve £60 million annual cost savings and added that it had also seen some of its key markets stabilise.

Shares rose 10% – up 11p to 120p – while low-cost airline easyJet surged 10% or 19.75p to 225p after strong passenger numbers showed the impact of its pricing regime being introduced at its recent acquisition Go.

British Energy, the struggling electricity giant, saw its shares rise almost 37%, up 1.85p to 6.90p, after announcing a four year supply deal with Centrica.

The news, which gave British Energy investors some hope that a proposed £1.5 billion bail out for the business will be agreed in principle next week, also helped Centrica shares rise 2p to 157.25p.

The biggest Footsie risers were Schroders NV up 20p at 422.75p, Amersham ahead 17p at 482p, Schroders up 14.5p at 456.5p and Bunzl up 11.25p at 366.75p.

The biggest Footsie fallers were Invensys down 2.75p at 42.75p, Rolls-Royce off 4.5p at 88p, BG Group down 11p at 231p and ICI off 7p at 183p.