Footsie on a winning streak

Positive sentiment that drove the FTSE 100 Index to an 11-day winning streak evaporated today as investors suffered a bad case of the January blues.

The Footsie retreated 32.2 points to close at 4473.0 after a combination of a lacklustre opening on Wall Street and the ongoing weakness of the US dollar dragged stocks lower.

Official data showing UK companies were more profitable than at any time for four years failed to lift market morale as investors set about banking gains.

It was a similar situation across the Atlantic with the Dow opening 30 points lower as investors stayed on the sidelines ahead of key employment data later this week.

Attention in London will now switch to tomorrow’s key decision on interest rates where the Bank of England’s monetary policy committee will decide whether to move them from 3.75%.

Mining stocks were among those suffering the most in trading today with Rio Tinto down 41p at 1512p, BHP Billiton off 14.25p at 475p and Anglo American 39p lower at 1193p.

There was little cheer for oil giants Shell and BP, off 9.75p and 11.5p at 403.25p and 441.25p respectively, after analysts revised targets for the pair following a recent strong run for the energy sector as a whole.

But shares in British Airways took off after the airline benefited from positive notes from JP Morgan and Goldman Sachs.

BA, which yesterday encouraged the market with passenger numbers for December, surged more than 11% or 27.75p to 269.75p while airports operator BAA added 12.5p to 497.75p. BA’s shares are now at their highest level since September 2001 – a far cry from a low of 86p in 2003.

The upward momentum was shared by easyJet in the FTSE 250 Index, with shares in the low-cost airline ahead 6% or 17.5p to 327p.

But the warm glow around aerospace stocks failed to fire interest in shares of engineer Smiths. It topped the Footsie fallers with a 27.5p fall to 626.5p, while BAE Systems slipped 2.5p to 165.25p.

The biggest loser of the day was Poundstretcher owner Brown & Jackson after it warned that it was “unlikely” to make a profit this year. Investors took fright at news that its turnaround programme would be delayed by a year to send its shares 26% lower or 22.5p to 63.5p.

Construction firm Carillion fell 0.75p to 163p.25 after telling the City that Network Rail’s move to take all track maintenance in-house would slash its profits by £15 million.

Elsewhere, bakery chain Greggs was in positive mood after announcing an improved trend for like-for-like sales in the run-up to Christmas. Shares rose 108p to 3208p.

The day’s biggest risers were British Airways, up 27.75p to 269.75p, Yell Group ahead 9.75p to 317.25p, Daily Mail & General Trust gaining 17p to 675.5p and BAA advancing 12.5p to 497.75p.

The main fallers were Smiths Group, down 27.5p to 626.5p, Legal & General off 3.5p to 99.5p, Anglo American losing 39p to 1193p and BG Group dipping 9p to 278.5p.