Footsie fails to stay above 4,000 mark

The FTSE 100 Index failed to maintain its position above a key threshold today as confidence ebbed away following a poor start on Wall Street.

After earlier healthy gains had helped the Footsie through the 4100 barrier, the blue-chip index lost ground to end the day a modest 6.8 points up at 4086.5.

Investors in London moved back to the sidelines after the Dow Jones Industrial Average lost about 30 points as the Footsie closed.

London shares had opened on a positive note amid news that US soldiers had killed Saddam Hussein’s two sons in Iraq and lifted further despite a mixed day for corporate news.

Figures from catalogue retailer GUS and doorstep loan provider Provident buoyed investors and offset downbeat updates from Sainsbury’s and Cadbury Schweppes.

Argos-to-Homebase group GUS ended the day among the highest Footsie risers after it said it had seen an “outstanding” first quarter, although it did also warn that it might not be able to keep up the pace.

The figures for the three months to June 30, which showed Argos enjoyed like-for-like sales growth of 8%, helped lift shares more than 3%, or 24p, to 729p.

Supermarket chain Sainsbury’s, which reported disappointing first quarter sales figures, dipped 4.5p to 260p.

The performance hardly helped the cause of chief executive Sir Peter Davis as he prepared to meet shareholders at the company’s annual general meeting.

Elsewhere, confectionery and fizzy drinks maker Cadbury Schweppes rallied 3.5p to 353p despite posting a 5% fall in pre-tax profits and warning that depressed demand for fizzy drinks in the US would continue.

Door-to-door lender Provident Financial saw its shares end the day off 7.5p to 637.5p despite posting a 10% rise in half-year profits driven by expansion overseas.

Pub group Mitchells & Butlers topped the list of FTSE 100 risers as reports said it had gone head to head with Pubmaster in submitting bids for Scottish & Newcastle’s pub estate.

Among the biggest fallers were aerospace stocks BAE Systems and Rolls-Royce, which both lost height after US aircraft giant Boeing posted a second quarter loss. BAE eased 3.5p to 140.5 while Rolls slipped 5p to 135p.

In insurance, Prudential continued to lose ground amid talk it would cut its dividend next week, losing 4p to 409p. Royal & Sun Alliance was also off 2.25p to 149p.

Outside the Footsie, online bank Egg gained 9p to 133.25p as investors shrugged off heavy losses at its French arm.

However, flag carrier British Airways lost 4p to 169p as the recent wildcat strike hit shares.

The day’s biggest risers were Mitchells & Butlers, up nearly 4% or 9p at 239p, GUS ahead 24p at 729p, GlaxoSmithKline rising 37p to 1212p, Next advancing 34p to 1154p and Old Mutual up 2.75p at 96.75p.

The biggest fallers were Schroders NV, off 21.5p at 543.5p, Rolls-Royce Group down 5p at 135p, Vodafone easing 3p to 112.5p, BAE Systems losing 3.5p to 140.5p and mm02 down 1.25p to 52p.