FTSE flutters around 4300 barrier

The FTSE 100 Index is again testing the 4300 support level despite a lacklustre overnight performance on Wall Street.

After drifting lower in early trading, the blue chip index had climbed just inside positive territory by mid-morning up 3.1 points at 4296.1 having briefly touched the 4300 mark.

Despite Wednesday night's negative close on Wall Street, traders expect the Dow Jones Industrial average to make modest gains later.

Meanwhile on this side of the Atlantic, a strong set of results from supermarket chain William Morrison and an unexpected rise in retail sales figures helped lift the mood.

Morrison featured on the FTSE 100 risers board, seeing its shares climb 3p by mid-morning to 220p after cheering investors with a 10% rise in first half pre-tax profits.

The group shrugged off the distraction of the bidding war for rival Safeway, which dipped 1.75p to 295p.

But high street retailer Next fared less well, leading the Footsie fallers with a 2% or 27p drop to 1105.5p, despite topping City forecasts with a 6% rise in first half profits and increasing its dividend.

After a strong run for the shares a lower like-for-like sales figures for the six weeks since the start of August was enough to send shares lower. Fellow clothing retailer Marks & Spencer also lost ground, down 7.75p at 316.75p.

But insurance stocks were having a better day led by Norwich Union owner Aviva which climbed 9p to 531.25p while Prudential lifted 2.25p to 469p and Royal & Sun Alliance edged up 0.25p to 121.5p.

Elsewhere books and news retailer WH Smith cheered 7.75p to 365.25p after announcing the sale of its American airports and hotels businesses which have been hit by the economic downturn in the US as well as the fallout from September 11.