Pharma shares prop up Footsie

Drugs-based companies propped up the FTSE 100 Index today as blue-chip shares finished slightly down at the end of an uncertain session.

Market heavyweights AstraZeneca and GlaxoSmithKline both posted gains while healthcare group Amersham surged 7% to the top of the Footsie risers board.

The trio were among the few stocks to provide a positive lead as the Footsie closed down 1.8 points at 3926 after a weak opening on Wall Street did little for dealing activity on this side of the Atlantic.

Amersham’s progress came after reporting “good momentum” in the first three months of 2003. With the company’s outlook unchanged, shares rose 28.25p to 449.75p.

Joining Amersham in positive territory was AstraZeneca after the Anglo-Swedish group was boosted by strong first quarter figures. Shares rose 79p to 2455p.

The company reported rising sales despite generic competition for its ulcer drug Losec.

GlaxoSmithKline was also riding high with a 25p gain to 1254p after announcing a strong start to 2003, driven by a rise in underlying sales in its core pharmaceuticals division of 9%.

Despite the raft of positive corporate updates, analysts said the economic picture remained difficult to call and had done little to inspire the blue-chip index through the psychologically important 4000 barrier.

Also enjoying gains in the Footsie was automotive and industrial engineering group Tomkins – up 7p at 212p – after it added to its portfolio of North American businesses with a £143 million deal to buy Canadian-based Stackpole.

Leisure group Whitbread proved another riser following a “robust” performance in March and April and a 10% lift in annual underlying operating profits. Shares closed 9.5p ahead at 619.5p.

But it was a less positive day for banks. Royal Bank of Scotland was down at 1641p – a 3p loss – Barclays fell 10.75p to 432.25p, Lloyds TSB was off 10p at 411.5p and Alliance & Leicester fell 23.5p to 811p.

Insurers were mixed as Norwich Union owner Aviva slipped 11p to 440p but Legal & General gained 0.75p to 77.5p after a 4% fall in new business sales came in at the top end of expectations.

In the second tier FTSE 250 Index, holiday operator First Choice offered a ray of hope for the battered travel sector after reporting signs of improved booking levels over the last two weeks. Shares rose 5p to 94p, while rival MyTravel inched up 1p at 11p.

Other holiday-related movements saw low cost airline easyJet rise more than 6% or 11.75p to 189p and British Airways gain 4.5p to 126.5p.

And turnaround plans at retailer Body Shop appeared to be on track today following a 76% surge in annual bottom-line profits. Shares gained 0.5p at 90p as management pledged to continue the recent improvement.

The leading Footsie risers were Amersham up 28.25p to 449.75p, AMVESCAP up 18p at 340p, Tomkins up 7p at 212p and AstraZeneca up 79p at 2455p.

The fallers were Capita down 15.5p at 253.5p, BAE Systems down 6.5p at 127p, mmO2 down 2p at 55.75p and Northern Rock down 24.5p at 715.5p.