Drifting FTSE awaits UK Budget

London shares were lower for a second successive session today as traders awaited Chancellor Gordon Brown’s Budget reading.

With Monday’s euphoria over US troops entering Baghdad now over, attention has switched back to the economy and the contents of the lunchtime statement.

That uncertainty, particularly over Mr Brown’s growth forecasts, prompted the FTSE 100 Index to drift, easing 15 points at 3853.8 in the first hour.

There had been little help overnight from the Dow Jones Industrial Average - virtually unchanged during a subdued session.

The Footsie’s biggest move was made by ICI after the paints and chemicals group announced the departure of its chief executive Brendan O’Neill.

He presided over a profits warning last month and paid the price at a board meeting yesterday.

Shares rose 6%, or 6.25p to 110.5p, as investors welcomed his successor, ICI Paints boss John McAdam.

Outside the top flight, figures from discount retailer Matalan showing a 9% rise in pre-tax profits to £117.4 million drew a 3% rise in shares – up 4.25p to 157.25p.

But the going was tough for bookies Stanley Leisure after it warned some unfavourable results, including at the Cheltenham festival, would leave its mark on City forecasts. Shares slumped 24% or 88.5p to 279p.