Quiet day on FTSE as Dow pays respect to Reagan

The London market ended the week on a flat note today after Wall Street closed in a mark of respect to former US President Ronald Reagan.

A lack of impetus from New York meant a quiet day for investors, with the FTSE 100 Index closing 2.1 points down at 4484.0.

At least traders in London can draw comfort from a largely positive week overall with the Footsie still 30 points higher on Monday’s opening.

One analyst said that with the interest rate decision out of the way, there was every chance the index would test the 4500 level in due course.

Lower oil prices have helped settle blue-chip nerves, although there were signs of a modest rebound today after an industry watchdog said global demand in 2004 would be higher than previously thought.

It marked the end of a seven day respite from record oil prices which peaked this month at more than 42 US dollars a barrel.

As a result, airlines were among firms to find themselves under pressure with British Airways 4.25p lower at 255.25p on a day when few stocks managed gains of 1% or more.

Banking giant Barclays was the centre of attention after the Financial Times reported that it may bid for Cazenove, the UK’s oldest independent stockbroker. Investors appeared unimpressed by the news as shares slipped 3p to 489p.

Other financial stocks were in the red as well, with Northern Rock down 6p at 744p, HBOS off 6.5p at 719p and Friends Provident 0.25p weaker at 142.5p.

But mining stocks found their feet after a sticky run recently with Antofagasta rising 18p to 904p and Rio Tinto up 10p at 1294p.

Elsewhere, Marks & Spencer retained its recent strength to rise 7p to 366p as investors awaited the next developments in the battle for control of the high street retailer.

Telecoms stocks were among the other climbers, with Vodafone putting on 1.25p to 129.5p and rival mmO2 cheering 0.75p to 97p.

Outside the top flight, shares in transport firm First Group improved 5p to 279.5p after it was named as the preferred bidder to run Scotland’s rail service.

Rival transport group Go-Ahead was heading in the opposite direction, however, as investors gave a lukewarm response to its £1.2 million acquisition of Chauffeured Parking Services. Shares fell 26p to 1183p.

Among other movers, recruitment specialist Michael Page International remained unchanged despite benefiting from an upgrade by stockbrokers Morgan Stanley.

And speculation that fresh foods group Geest may be a takeover target mounted today after Icelandic investors Bakkavor took a greater slice of the company. Shares added 11.5p to 575p.

The highest risers in the Footsie today were Antofagasta up 18p to 904p, Marks & Spencer ahead 7p to 366p, ITV up 2p to 112.5p and Tomkins ahead 4.25p to 264p.

The heaviest fallers were Man Group down 51p to 1592p, Rentokil off 3.5p to 149p, British Airways down 4.25p to 255.25p and GKN off 3.5p to 241p.