Footsie fails to build on Wall St confidence

The FTSE 100 Index finished the week on a downbeat note today as London shares failed to make the most of a better mood on Wall Street.

Upbeat US economic data helped the Dow Jones Industrial Average claw back some ground after a tough session yesterday.

But weaker-than-expected second quarter UK GDP numbers took their toll and with a flood of company results due out next week nerves remained evident in the London market. The FTSE 100 Index eventually closed 18.4 points lower at 4131.2.

One of the few bright spots came from high street bank Alliance & Leicester, up almost 5% or 39p at 866p, after its interim results beat City forecasts.

The bank scotched fears that it would fall behind competitors in mortgage lending by managing to increase its share of a growing market.

But rivals had a mixed session with HBOS, which owns the UK's largest mortgage lender Halifax, losing hold of earlier gains to close unchanged at 786.5p, while Abbey National fell 4.75p to 486p. Both have results out next week.

A clutch of insurers joined Alliance & Leicester on the Footsie risers board, with Legal & General continuing to benefit from its own results yesterday.

L&G added 4.25p to 97p, while Royal & Sun Alliance gained 6.5p to 153p,Prudential rose 7p to 433p and Norwich Union owner Aviva added 8.25p to 497.25p.

Meanwhile mining giant Anglo American also made progress - climbing almost 5%

or 47p to 1069.5p - after better-then-expected results from diamond group De

Beers in which it holds a 45% stake.

Among the biggest fallers was oil giant Shell as traders continued to digest details of its half-year results yesterday.

While profit figures beat expectations, there was some disappointment at its decision not to buy back more shares this year, and shares were off more than 3% or 12.5p at 391p. Rival BP also eased 7p to 416p.

Outside the top flight, traders were keeping an eye on the retail sector amid reports that investment group Permira could finally be about to table a £1.5 billion offer for department store group Debenhams.

But with no news by the close of trading, shares in Debenhams had eased 6.5p

to 427p.

British Airways also fluctuated as pressure grew on management to find a breakthrough to the ongoing dispute over clocking-on swipe cards.

The stock fell as much as 4% earlier in the session but staged a late rally to close 2.5p higher at 170.5p.

Elsewhere, construction services group Carillion rose 3p to 154p after reporting that it was in line for one of the UK's largest ever public private partnership hospital contracts.

Carillion is part of a joint venture which has been named preferred bidder for a contract worth more than £1 billion to redevelop and maintain the Queen Alexandra Hospital in Portsmouth.

The biggest Footsie risers were Alliance & Leicester up 39p at 866p, Anglo American ahead 47p at 1069.5p, Legal & General up 4.25p at 97p, and Royal & Sun Alliance ahead 6.5p at 153p.

The biggest fallers were Tesco down 8.75p at 218p, Shell off 12.5p at 391p, InterContinental Hotels down 12p at 478p and Diageo off 13p at 630p.