FTSE wavering below opening figure

London shares reflected uncertainty over the length of the conflict in the Gulf today as the FTSE 100 remained close to its opening mark.

With volumes also low, the Footsie drifted between positive and negative territory to settle 17.3 points lower at 3711.8 by lunchtime.

The blue-chip index started the week at 3861 and the drop since Monday is a clear sign that traders are braced for a drawn-out battle over Iraq. The previous week saw more than 600 points added because of hopes of a brief war.

And the chances of a pre-weekend lift from the Dow Jones Industrial Average looked slim with Wall Street markets expected to again be in lacklustre mood.

In London, insurance stocks were dragging the Footsie lower with Friends Provident off 3.75p at 79.25p, Legal & General down 2.75p at 72.25p and Norwich Union owner Aviva 16.75p lower at 370.25p.

Amid figures showing consumer confidence at its lowest level since December 1995, leisure-based companies were among the heaviest fallers.

Already under pressure because of the Gulf conflict, Hilton Group fell almost 5%, or 7.25p to 140.75p, rival Six Continents eased 19.5p at 603p and Scottish and Newcastle fell 11.5p to 339.75p.

Among airlines, easyJet fell 12.5p to 226.5p and FTSE 250 Index counterpart British Airways tumbled 6.5p to 106p – a drop of almost 6%.

Other high-profile Footsie stocks in the news were supermarket group Sainsbury’s and mobile phone company mmO2 which both updated the market on their progress.

Sainsbury’s posted one of the session’s biggest rises – up 5p to 225p – after sticking to forecasts of double-digit profits growth.

The update generated buying in the rest of the retail sector with rival Tesco up 3p at 183.25p and Marks & Spencer up 3.75p at 290p after a fall yesterday. Safeway, meanwhile, managed a 0.75p gain to 257.5p.

MmO2 fared less well and was marked down 2.25p at 46.75p despite pledging to hit earnings targets and reporting strong second half growth. Rival Vodafone was unchanged at 114.5p.

Fund manager Amvescap lost 15.5p to 286.25p after announcing it was merging two US mutual funds into one under its largest subsidiary AIM Investments.

Elsewhere, financial services firm Man Group was riding high in the Footsie, gaining 54p to 1023.5, after yesterday telling the market it expected results for the year to March 31 to be “significantly” ahead of expectations.