FTSE slips after poor start to week

London shares failed to make up early losses today after a poor start to the week on Wall Street.

The FTSE 100 Index ended the session 50.8 points down at 4433.2, close to its intra-day low of 4430.3.

The Dow Jones Industrial Average was trading nearly 67 points adrift shortly after London’s close as US retail sales figures came in higher than forecast.

The upbeat US data added to speculation that the Federal Reserve could hike interest rates by as much as a half percentage point later this month.

The low spirits in London were not helped by news that UK companies have seen their profitability fall to a record low despite the recent economic recovery.

It also emerged that higher oil prices had helped to drive up the cost for UK manufacturers of raw materials by 1.6%.

Domestic attention is now expected to focus on tomorrow’s British inflation figures for hints about whether May’s UK rate rise has succeeded in cooling booming house prices and consumer spending.

Bookie William Hill was the heaviest Footsie faller, wilting more than 3% or 17p to 520p, while in the second tier Stanley Leisure slipped 30.5p to 446p and Rank lost 18.75p to 285.5p.

With no blue chip companies reporting today, stocks from outside the top flight were providing the interest.

Wine warehouse chain Majestic fell despite posting its eleventh consecutive year of record profits and saying that trading remained strong in 2004. Shares weakened 12.5p to 850p.

IT firm Radstone Technology slipped 5.5p to 354p, even though it posted a 17% hike in underlying profits after seeing increased demand by the military for its computer systems.

The biggest risers were BAT, up 10p to 807p, BAA ahead 2p to 542.5p, Gallaher up 2.5p to 680.5p and Allied Domecq ahead 0.75p to 461.5p.

The biggest fallers were William Hill, down 17p to 520p, Hanson easing 10.5p to 412p, BAE Systems off 4.75p to 208p and Morrison’s falling 5.25p to 230p.