Footsie closes above 4000 mark

The FTSE 100 Index managed to end the day above the 4000 mark today, shaking off downward momentum from across the Atlantic.

After an initial 24 point rise gave way to a fresh dip below 4000, amidst nervousness ahead of US employment figures, the FTSE looked set to finish the day back in the red.

But while the statistics did indeed disappoint – taking the Dow Jones Industrial Average 44 points lower as London closed – the Footsie managed a late recovery finishing up 17.9 points at 4024.8.

Upbeat figures on the state of the UK service and retail sectors also helped the mood although corporate news was thin on the ground. Wall Street is closed tomorrow for the Independence Day holiday.

With little driving London’s blue chip index in either direction, drugs giant AstraZeneca topped the risers board amidst optimism that approval from the US Food and Drug Administration for its cholesterol-lowering drug Crestor could be imminent.

Shares gained 4% or 95p at 2500p while rival GlaxoSmithKline was not far behind climbing 40p to 1235p.

Oil giants Shell and BP were among heavyweight stocks putting the blue-chip index under pressure, down 6.75p and 2.25p at 390p and 410.25p respectively.

And continued nervousness about competition in the mobile phone sector hit shares in mm02 – down 2p at 55p.

The lack of corporate news also did little for the overall mood of the Footsie, with most of the announcements coming outside the top flight.

FTSE 250-listed British Airways was flying high after a strong set of traffic figures. Shares soared 5.5% or 8.5p to 163p, building on its recovery after a credit rating downgrade hit the stock earlier in the week.

But the picture among its low-cost rivals could not have been in sharper contrast. Gloomy June traffic figures from Irish no-frills carrier Ryanair knocked shares more than 7% or 31.5p lower to 400p.

And Ryanair’s arch-rival easyJet also lost 2.75p to 230p.

Toy store group Hamleys continued to attract interest – gaining another 20.5p to 253.5p – after Icelandic group Baugur upped its offer for a second time to £58.7 million.

Brewer and pubs owner Greene King was another to sparkle, lifting 19.5p to 814.5p, after an 8% rise in annual profits.

Burger King restaurants operator Gowrings was another strong performer after it said it had “turned the corner” following a 2% rise in like-for-like sales from its franchised restaurants. Shares rallied almost 13% or 7p to 61.5p.

However, a merger deal struck between British Biotech and Vernalis – creating a company valued at £90 million – failed to capture the imagination of investors.

After an initially solid start, Oxford-based British Biotech closed down 7% or 4.5p at 59.5p while Vernalis eased 5% or 2.5p to 47p.

The biggest risers were AstraZeneca up 95p at 2500p, GlaxoSmithKline up 40p at 1235p, Rentokil Initial up 5.75p at 194.75p and Wolseley up 17.5p at 678p.

The biggest fallers were mmO2 down 2p at 55p, Schroders NV down 17p at 555p, Shire Pharmaceuticals down 9.5p at 376.75p and Schroders down 14p at 620.5p.