Footsie shows modest gains

Investors shied away from the London market today as lacklustre trading left the benchmark FTSE 100 Index only marginally in positive territory.

By lunchtime, the Footsie had fallen back from earlier 34-point gains to 3601.7 – just 8.4 points above its opening level.

Engineering group Invensys topped the Footsie risers board with a 15% gain, or 2p, to 15p, as fluctuations in its share price since a profits warning continued.

Engine maker Rolls-Royce also fared well with an 8% rise, or 5.75p to 77.5p, after recovering from sharp falls which had taken it below 70p yesterday.

Elsewhere, shares in pest control-to-tropical plants group Rentokil Initial were up 5% or 7.75p to 180.25p after it reported a 4% rise in pre-tax profits for the year to December 31.

The London market had opened lower after another disappointing session for the Dow Jones Industrial Average.

And there was little hope of help from Wall Street later on today as markets there are forecast to be flat this afternoon.

In the Footsie, banks were holding firm after weakness in recent sessions, with Royal Bank of Scotland helping the mood following a solid set of annual results figures.

By lunchtime RBS was up 16p at 1415p, while HSBC rose 4p to 675p and Alliance & Leicester gained 5.5p to 771.5p.

Oil stocks also recovered some ground after declines yesterday with BP up 0.75p at 402.75p and Shell ahead by 4p at 360.5p.

Legal & General overcame earlier weakness to lift 1.5p to 72p despite unveiling a 7% drop in operating profits and plans to reduce bonuses.

Other insurers fell with Prudential easing 3.75p to 329.25p after an early 2.25p gain.

Elsewhere, leisure group Hilton was down 1.75p at 146.25p after reporting profits had slipped 17% at its hotels business due to falling demand from business travellers.

Outside the Footsie, most attention was focused on Pizza Express – 50p higher at 382p – after agreeing a £263 million or 370p a share takeover deal with a consortium including former chairman Luke Johnson.

The share price was further buoyed by the prospect of a higher bid emerging from a consortium involving the backers of the Nando’s restaurant chain.

And shares in car rental company Avis Europe rose 6.25p to 84.75p as a 15% fall in annual profits met guidance given in June last year.