Footsie wipes out yesterday's gains

London’s leading shares came off the boil today, with the benchmark FTSE 100 Index wiping out all of yesterday’s gains.

The blue-chip index tumbled 67.5 points to 3899 by the close of trading after surging to within sight of the important 4000 barrier in recent days.

In particular, oil stocks were feeling the pressure ahead of a crucial OPEC oil cartel meeting in Vienna.

Traders expect the meeting will spark a cut in global production to pre-Iraq war levels in an effort by oil producing nations to stabilise prices.

Shell lost 7.25p to 387.5p while rival BP, which today warned shareholders at its annual general meeting of uncertain times ahead, was down 6.5p at 406p.

Mining and precious metal companies also took a hammering. BHP Billiton led the Footsie fallers with a 27.5p drop to 308.25p – an 8% loss.

It was closely followed by Rio Tinto, which lost 86p or 7% to 1129p. And Anglo American was also hit, shedding 47.5p to 868.5p.

Drinks stocks had earlier caught the eye after Allied Domecq rose almost 3% following half-year results at the upper end of market hopes.

Analysts had feared the worst from the figures because of higher pension costs and exchange rate movements but Allied still showed a 2% rise in profits before one-off items at £256 million.

However, those early gains had been poured away by the close with Allied shares down 12.5p at 316.25p. Rival Scottish & Newcastle rose 0.75p to 350.25p while Guinness maker Diageo lost earlier gains to fall 15p to 677p.

Elsewhere, hotels group InterContinental was under pressure after warning second quarter profits would be “substantially below” last year.

The fall, caused by the impact of the Gulf war and the SARS virus on international travel, initially sent shares down 3%.

But the stock later recovered to stand just 2p lower at 340p and was better off than rival Hilton Group, which eased 9.25p to 147.25p.

Among other blue-chip developments, insurance giant Aviva finished the session 4.25p adrift at 430.25p despite giving a “resilient” first quarter update which showed sales at the Norwich Union company had inched ahead.

Outside the top flight, shares in online bank Egg were marked 12% down – off 12.25p at 90p – after it said it would take longer for its fledgling credit card business in France to break even.

And traders sent Somerfield shares 0.75p lower at 92p after last night’s announcement that the supermarket group had rejected a takeover approach.

Elsewhere, Colt Telecom offered investors some encouragement by reporting a good start to the year. Shares rose more than 7% to 47.5p, a 3.25p gain.

The biggest Footsie risers were Hays up 2.75p at 86.75p, Shire Pharmaceuticals up 13p at 419p, Safeway up 4.75p at 270p, and British Land up 5.5p at 415p.

The biggest losers were BHP Billiton down 27.5p at 308.25p, Rio Tinto down 86p at 1129p, Prudential down 24.25p at 368.75p, and AMVESCAP down 22p at 350p.