Footsie continues to slide

The FTSE 100 Index sunk to its fourth successive loss today as investors found little reason to put money into the London market.

The session was marked by more uncertainty with the blue-chip index fluctuating between positive and negative territory for much of the day.

And by the close the FTSE 100 Index was 23.4 points lower at 3569.9 after failing to follow the brighter lead of European and US markets.

Insurers and financial stocks were again the subject of most interest during a hectic session for corporate results.

The banking sector – battered by recent dividend and profit cuts – at least got an early boost when Royal Bank of Scotland issued results in line with market hopes.

The 12% lift in profits to £6.45 billion initially earned RBS a shares lift but the stock closed 5p lower at 1394p on an edgy day for the sector.

Elsewhere, Abbey National rose 0.5p to 378.5p, HSBC lifted 3.5p to 674.5p and Alliance & Leicester strengthened 5p to 771p but those gains were offset by a fall of 13p to 625.5p from HBOS and a 4.5p drop to 345.5p for Barclays.

Insurers were largely stronger after Legal & General gave a cautiously optimistic outlook despite unveiling a 7% drop in operating profits and announcing plans to reduce bonuses.

Legal rose 3.75p to 74.25p while Royal & Sun Alliance gained 2.75p to 65.5p and Norwich Union owner Aviva lifted 2p to 380p. Prudential bucked the trend with a 2.75p fall to 330.25p.

Among other sectors, oil stocks enjoyed a mixed session despite another rise in the price of crude. BP was down 2p at 400p but Shell gained 2.25p to 358.75p.

And pharmaceuticals were weaker after Shire said it was still awaiting regulatory approval for a key kidney drug. Shares eased 23.75p to 293p while GlaxoSmithKline fell 22p to 1088p and AstraZeneca slipped 50p to 1980p.

Engine maker Rolls-Royce topped the Footsie risers board with a 6% rise – up 4.25p to 76p – after recovering from sharp falls which had taken it below 70p yesterday.

Engineering group Invensys also posted a 6% gain but failed to hold on to rises of 15% earlier in the day as fluctuations in its share price continued following a profits warning. Shares rose 0.75p to 13.75p.

Among other companies reporting results today, leisure group Hilton fell 4.5p to 143.5p after reporting that profits had slipped 17% at its hotels business because of falling demand from business travellers.

Outside the Footsie, attention was focused on Pizza Express – 51.5p higher at 383p – 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.

The biggest Footsie risers were Rolls-Royce up 4.25p at 76p, Invensys ahead 0.75p at 13.75p, Legal & General up 3.75p at 74.25p and Royal & Sun Alliance ahead 2.75p at 65.5p.

The biggest fallers were Amersham down 35p at 424p, Shire Pharmaceuticals off 23.75p at 293p, Old Mutual off 3.75p at 83.75p and Centrica down 6p at 134p.