Vodafone results fail to inspire FTSE

The London market saw its recent bumpy run continue today following a negative response to full-year results from heavyweight Vodafone.

Profits of £10 billion at the mobile phone giant failed to lift the spirits of investors as the FTSE 100 Index closed 10.9 points lower at 4418.0.

Oil prices contributed further to negative sentiment, remaining close to record highs despite falling back slightly today.

Geoff Langham, head of trading at deal4free.com, said: “The market is going to remain wary of any further hikes in the price of crude.”

But hopes of a brighter day on the markets tomorrow were raised by a minor recovery in the Footsie during the afternoon following an early 32-point fall.

Good news was also provided by the Dow Jones Industrial Average, which was back near the 10,000 barrier at the time of London’s close.

Mobile phone giant Vodafone lost 5% after investors reacted negatively to news that its dividend was growing at a slower rate than in previous years.

Vodafone lost 6.75p to 128.75p and stood second in the list of top-flight fallers. It helped to drag down rival mmO2 – off 1.5p to 94.75p.

The stock under the most pressure was media group Emap which weakened nearly 11% or 90p to 756p after highlighting problems at its French business, which accounts for 30% of sales.

The group said increased competition in France and the weakening of the euro had affected the division.

Troubled retailer Marks & Spencer finished in positive territory after unveiling a slight rise in annual profits to £763 million but revealing a 0.2% fall in its share of the clothing market. Shares gained 0.75p to 280.25p.

Mining stocks also lost ground with Xstrata off 6p to 674p, Rio Tinto losing 4p to 1277p and BHP Billiton weakening 3.5p to 455p.

Scottish Power was among those propping up the Footsie with a 10.5p gain to 389p as investors cheered a 10% hike in annual profits to £920 million.

Oil giants BP and Shell were also among the top performers, advancing 10.25p and 5.5p to 492.5p and 399p respectively.

Record full-year profits of £827 million from Argos owner GUS cheered investors as the company’s shares climbed a penny to 796p.

Outside the top flight, Arla Foods cheered 3% or 1.75p to 56.25p after it was named as sole supplier of milk to supermarket chain Asda.

But the news was greeted with shock by investors in rival firms such as Dairy Crest which fell 17.5p to 359p. Shares in Robert Wiseman Dairies dived 17% or 47.5p to 236p after it emerged the lost milk contract could wipe £70 million off annual turnover.

The biggest Footsie risers were Land Securities up 32p at 1120p, Scottish Power ahead 10.5p at 389p, British Land up 17.5p at 660p and BG Group ahead 8.75p at 338.75p.

The biggest fallers were Emap down 90p at 756p, Vodafone off 6.75p at 128.75p, Cable & Wireless down 2.75p at 120.75p and BAT off 17.5p at 796p.