Footsie slides towards 4000 mark

The FTSE 100 Index slid into negative territory today after disappointing economic data ahead of the close of trading dented share prices.

After managing to stay above its opening mark for most of the session, disappointing figures from the US were enough to send the Footsie back into the the red at the end of the day.

Having climbed to within one point of the 4100 barrier in early trading, the benchmark index lost ground and dropped to 36.6 points below its opening mark to close at 4031.2.

Meanwhile the Dow Jones Industrial Average slid below its own opening mark, down 7 points at 8981 as London closed – from an earlier 69-point gain.

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

After earlier helping to keep the Footsie in positive territory, financial stocks later dipped into the red with Royal Bank of Scotland alone among the big high street banks managing to end the day unchanged at 1700p.

Meanwhile HBOS slid 8.5p to 784.5p, HSBC eased 3p to 716p, Barclays inched 1.75p lower to 450p and Lloyds TSB was off 2.75p at 430.25p.

Share price movements among blue chips in either direction were generally small with tobacco group Gallaher achieving the biggest rise of the day – a modest 1.6% gain, up 9.5p at 595p, after saying current trading was in line with expectations.

InterContinental Hotels made steady progress climbing 5p to 430p continuing its recent improvement in form. Shares gained another 5p to reach 430p today.

The Footsie fallers included mobiles group mm02 after negative broker comments. shares fell 1.25p to 56.75p while rival Vodafone lost 3.25p at 118.5p.

Telecoms operator Cable & Wireless, slipped 2.5p to 113.5p despite announcing the appointment of NATO secretary general Lord Robertson as deputy chairman from next year and information group Reuters was also losing out, falling 7.5p to 175.75p.

Media giant WPP was also doing well despite reiterating an earlier statement that 2003 continued to be difficult for advertising. In an AGM statement the group expressed some optimism for 2004 and shares rose 2p to 475p.

Action outside the Footsie was more pronounced particularly among retailers buoyed by fresh takeover talk.

The biggest gain in FTSE 250 Index was for supermarket group Somerfield which climbed 5% or 6.25p to 126.25p boosted by takeover talk while department store group Debenhams gained more than 4% – up 18.25p at 420.25p – after it announced a second party was interested in taking it private.

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

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

The biggest risers were Gallaher up 9.5p at 595p, InterContinental Hotels up 5p at 430p, BHP Billiton up 3p at 319p and GUS up 6.25p at 679p.

The biggest fallers were Reuters down 7.25p at 175.75p, Schroders NV down 21.25p at 553.75p, Red Elsevier down 18p at 504.25p and Smith & Nephew down 10.5p at 348.25p.