Footsie hanging in the balance

The benchmark FTSE 100 Index clung on to positive territory today despite slipping back from earlier gains.

London’s leading shares continued to suffer from uncertainty with the top-flight unable to consolidate an earlier 30 point advantage.

By lunchtime, the Footsie was up by just 3.6 points at 4071.4 with the future direction of the market still difficult to call.

Despite seeing the Footsie rise 12% in the last quarter, analysts said concerns about the economy and the looming half-year results season left prospects for the coming three months uncertain.

Share price movements in the top flight were thin on the ground, although financial stocks did their best to keep the Footsie’s head above water.

Among those in positive territory, Prudential added a penny to 370p, Lloyds TSB cheered 2.25p to 435.25p and Norwich Union owner Aviva gained 2p to 426p.

The Footsie fallers included telecoms operator Cable & Wireless, which slipped 2.25p to 113.25p despite announcing the appointment of NATO secretary general Lord Robertson as deputy chairman from next year.

Information group Reuters was also losing out, falling 5p to 178p while sanitation firm Rentokil Initial lost 6p to 186.75p.

In other boardroom movements, utility group BG said non-executive chairman Sir Richard Giordano would soon be retiring. Shares rose 5.5p to 272.5p.

And water to sewerage firm Kelda gained 9.25p to 433p after announcing the appointment of Christopher Fisher as a non-executive director.

Tobacco firm Gallaher saw its shares head 9.5p higher to 595p after a trading update said it was performing in line with expectations.

Media giant WPP was also doing well despite reiterating an earlier statement that 2003 continued to be difficult for advertising.

Shares rose 9p to 482p.

Outside the Footsie, department store group Debenhams gained more than 4% – up 17p at 419p – after it announced a second party was interested in taking it private.

And insurer Britannic lifted 2p to 242p following news of its deal to sell its mortgage lending subsidiary to specialist lender Paragon for £18.7 million. Paragon shares rose 3.5p to 280p.

Toy retailer Hamleys edged 0.5p higher to 232.5p after independent directors withdrew their backing for a takeoer offer from Icelandic retailer Baugur.

The battle for the toy store has warmed up after Waterstones bookshop founder Tim Waterstone trumped the bid with a rival offer at the end of last week.