FTSE slips ahead of holiday weekend

British hoteliers and pub groups were doing their best to inject life into the London market today as trading faltered ahead of the bank holiday weekend.

Whitbread, Hilton and InterContinental Hotels all posted healthy gains – but this was not enough to stop the FTSE 100 Index slipping 10 points lower to 4443.6 by lunchtime.

Oil companies were among those dragging the FTSE down as the price of crude lifted slightly.

One trader also warned the threat of a rate hike by the European Central Bank next week was likely to leave investors in a cautious mood ahead of the long weekend.

New York’s Dow Jones Industrial Average – tipped to open 10 points lower – was unlikely to offer any inspiration to the London market.

InterContinental Hotels was 11.5p (17.2c) higher at 521.5p (€7.80) following its announcement yesterday that first quarter profits had doubled. Leisure group Whitbread was also in the FTSE risers, up 27p (40.4c) to 809.5p (€12.10), while Hilton cheered 4p (6c) to 265.5p (€4).

Marks & Spencer was the highest top flight climber, advancing more than 4% or 15.5p (23.2c)to 360.5p (€5.40), following the announcement that retail billionaire Philip Green was mulling a bid for the chain.

However, rival Next featured high on the losers board after an analyst said it was among those most likely to feel the squeeze from the sudden interest in M&S. Shares weakened 23p (34.4c) to 1387p (€20.80).

Second tier stock Matalan, another of those said to be likely to lose out from an approach, lost 1.75p (2.7c) to 182.75p (€2.70).

Back in the top flight, retailer Boots was in negative territory following yesterday’s 6% climb in the wake of its full year results. Shares were off 13p (19.5c) to 662.5p (€10) today,

Oil giants Shell and BP were also on the back foot, down 3.25p (4.9c) and 0.25p (0.4c) to 395.25p (€5.92) and 483.75p (€7.20) respectively.

Financial stocks were weak with Legal & General losing 2p (3c) to 88.5p (€1.30), Barclays retreating 4.5p (6.7c) to 480p (€7.20) and Prudential off 5.5p (8.2c) to 446.5p (€6.70).

Elsewhere, troubled tour operator MyTravel saw its shares rise 6% – up 0.5p (0.7c) to 8.5p (12.7c) – after it posted a reduction in half yearly losses.

However the group, formerly known as Airtours, said losses at its UK arm were still too high amid challenging market conditions.

Menswear retailer Moss Bros was also in upbeat form, lifting 5% after saying it had maintained sales growth despite tough conditions on the high street. Shares rose 3.5p (€5.2c) to 73.5p (€1.10).