Footsie back in the red

Uncertainty over the war in Iraq remained at the forefront of traders’ thoughts as the FTSE 100 Index slipped back into the red today.

The blue-chip index maintained losses seen earlier in the session to reach lunchtime 45.8 points lower at 3746.8.

The mood was not helped by expectations that the Dow Jones Industrial Average would open lower as investors focus on fears that the conflict in the Gulf will take longer to resolve than first thought.

In London, a host of sectors were trading lower, with insurers and banks among those most under pressure.

Norwich Union owner Aviva slipped 15p to 387p and Friends Provident eased 2p to 83.5p while Barclays was off 9.75p at 375p and Abbey National weakened 10.25p to 352.25p.

And the retail sector was in focus after Boots announced plans to pull the Wellbeing Services concept it launched less than three years ago.

The company also warned that full-year profits would be at the lower end of market expectations – before accounting for the cost of the strategic review.

The update did little for investor confidence and shares fell almost 4% – off 24.5p at 553.5p.

On a hectic day for corporate news, shares in fashion group Next rose 4p to 813p despite flat like-for-like sales growth in its most recent trading period.

Other Footsie risers included Man Group, the hedge fund company, which rose 5% or 46p to reach 965p after a trading update in which it said full-year results would be ahead of market expectations.

Logistics group Exel was up 7.5p at 602.5p, after being awarded the management of seven warehouses belonging to Marks & Spencer – down 7.75p at 285.75p.

Outside the top flight, Austin Reed was up 17%, or 20p at 135.5p, after confirming it had been the subject of possible takeover interest.

And cable operator Telewest Communications slipped 0.25p to 2.35p as it revealed a £2.2 billion annual loss during its battle to secure a financial restructuring and reduce its £3.5 billion debt mountain.

Elsewhere, radio group GWR lost 7% after it forecast that revenues in the year to March 31 would be slightly down on last year. Shares fell 10.5p to 137p.

Royal & Sun Alliance – now in the FTSE 250 Index – lost 1p to 75.25p after being fined almost £1 million by the Financial Services Authority for endowment mis-selling in the late 1990s.