Pharmaceuticals keep mood down in London

Pharmaceutical companies were contributing to a downbeat mood on the London market today following a revenues warning from drugs giant Pfizer.

GlaxoSmithKline, AstraZeneca and Shire Pharmaceuticals were among the 10 heaviest fallers as the FTSE 100 Index lost 2.5 points to stand at 4338.2 by mid-morning.

The announcement from Pfizer had unsettled investors in New York last night, where the Dow Jones Industrial Average lost nearly 50 points.

A lack of corporate news in London added to the lack of momentum driving the Footsie forward.

In London, Shire Pharmaceuticals was the second heaviest faller in the Footsie following last night’s warning from Pfizer. GlaxoSmithKline was also down 13p at 1048p and AstraZeneca was 37p lower at 2292p.

British Land, which offered an encouraging update on the London property market, dropped 1.5p to 729.5p on the back of the update.

Rolls-Royce and British Airways were also in the red – both down 3.75p to 239.75 and 244p respectively as the price of a barrel of crude oil in New York stayed above the 40 dollar mark.

In contrast, British American Tobacco was heading the risers after cheering investors with news that it is to become the first foreign company to manufacture cigarettes in China. Shares advanced more than 2% or 19.5p to 860.5p.

There was a slight movement in the share price of Marks & Spencer as the stock found its level after the end of the Philip Green takeover saga. The company, which fell 5% yesterday, was ahead by 2.5p at 347.5p.

Outside the top flight, Canterbury Foods slumped 8% or 2.5p to 27.5p as it said high meat prices had continued to put pressure on its business.

Office provider Regus was also in the red after announcing it would be buying US rival HQ Global for £163.5m (€245.8m). Shares weakened a penny to 68p as Regus said it would be issuing new shares to finance the acquisition.