FTSE rises after tumultuous day

London’s leading shares were back in positive territory today after a rollercoaster ride saw the FTSE 100 fluctuate markedly.

The Footsie swung more than 122 points between a high of 39.5 points and a fall of 82.9 points as renewed uncertainty over war in Iraq dogged shares.

The blue-chip index eventually ended the day up 18.7 points at 3762 after a positive opening on Wall Street took the Dow Jones Industrial Average up 67 points by the time the London market had closed.

But with trading volumes relatively light and little corporate news to move the market, the nervousness which yesterday took the index 117.8 points lower was never far from the surface.

Early in the session fresh military setbacks, including two British combat deaths, prompted the index to open on the back foot.

Among other factors weighing on the market, chemicals and paints group ICI caught the eye for the wrong reasons.

ICI dropped 39% or 59.5p to 94p after warning that problems in its Quest flavourings and National Starch divisions had hurt first quarter profits. It warned further job losses were now planned because of the downturn.

Property group Canary Wharf was also on the way down amid renewed fears over occupancy levels. On top of recent falls, shares lost another 6.75p to reach 158.25p.

Other fallers in the FTSE 100 Index again included banks with Abbey National slipping 9.5 to 356.25p, Royal Bank of Scotland down 21p at 1448p, HBOS 0.5p lower at 674.5, and Barclays off 2p at 370.75p.

Among the insurers, Friends Provident fell 1.75p to 82.5p, Legal & General lost 0.75p to reach 764.25p and Prudential was 5.75p cheaper at 344.25p.

But shares in telecoms group Cable & Wireless cheered 22% or 13.25p to 73.25p after a tax cloud hanging over it was removed with the payment of £380 million to cover its outstanding corporation tax affairs for the 10 years to March 2001.

Elsewhere, catering giant Compass was rewarded with a 4% rise – up 11p at 291.75p – after it stuck by profits forecasts.

But despite posting a positive update, traders marked publisher EMAP down 4p to 740p as traders took note of its cautious outlook for 2003.

Outside the Footsie, shares in JJB Sports leapt 16%, or 25.5p to 182p, after the group announced that chairman Dave Whelan was considering taking it private.

The possible move to buy the rest of the company comes after a sharp fall in the Wigan-based group’s market value. Shares were worth 458p last year.

And ITV broadcaster Carlton Communications was 3.75p higher at 94.5p after its AGM statement outlined half-year revenues unchanged on a year earlier.

The biggest gains on the FTSE 100 Index were for Cable & Wireless up 13.25p at 73.25p, Granada up 2.5p at 62.25p, BAA up 18.5p at 488.5p and Compass up 11p at 291.75p.

The biggest Footsie fallers were ICI down 59.5p at 94p, Xstrata down 25.5p at 468, Canary Wharf down 6.75p at 158.25 and Next down 32.5p at 789.5p.