Trading slow in London

Investors were left awaiting developments on Wall Street today after trading in London proved to be decidedly lacklustre.

The FTSE 100 Index struggled for direction and reached lunchtime 2.3 points lower at 3690.1 after gaining 80 points in its previous session.

Wall Street was closed yesterday but the Dow Jones Industrial Average was today expected to build on strong gains seen on Friday.

However, Tom Hougaard, chief market strategist at financial bookmakers City Index, said: “Despite Friday’s positive close in the US all the uncertainties of the world persist. It will take a resolution of these issues to attract real money into the market.”

Most of the trading interest was focused on the contrasting fortunes of two of the biggest companies which reported figures today.

News and information group Reuters fell almost 12% – off 18.25p at 135.25p - after announcing its first annual loss as a public company.

The company is also cutting 3,000 jobs over the next three years and said recurring revenues had deteriorated in the current financial year.

On a brighter note, B&Q-to-Comet group Kingfisher surged more than 7%, or 14.75p to 222.75p, after informing the market that full-year profits were likely to be better than expectations.

The City was also encouraged by Kingfisher’s comments that its plans to demerge its electricals business remained on track.

Elsewhere in the Footsie, financial services group Bradford & Bingley’s shares were 1% lower – off 3.25p at 275.75p – after the former mutual warned growth in residential property prices was slowing.

That offset encouraging figures showing an 8% rise in annual underlying pre-tax profits.

Invensys, which last week lost around 50% of its value on the back of a profits warning, shed a further 0.5p to 20.5p.

Property company Canary Wharf also suffered, losing almost 3%, or 7.25p to 244.5p, after Deutsche Bank issued a report lowering earnings estimates across the commercial property sector.

And shares in defence group BAE Systems were in edgy mood ahead of the company’s annual results on Thursday. With speculation growing of an £800 million hit to cover project over-runs, shares fell 4.25p to 115.5p.

Outside the Footsie, bank note printer De La Rue was worth less on the London market after warning that profits for the year to March 29 would be 25% below expectations. Shares slumped 31%, or 88p, to 196.5p.