FTSE ends week on a low

The London market ended the week on a low note after mixed economic news hit shares in New York.

The FTSE 100 Index stayed firmly in negative territory, closing down 5.6 points to 4413.1, after worse-than-expected US output data dragged Wall Street lower.

Despite upbeat US consumer sentiment figures, the Dow Jones Industrial Average dipped five points to 10123 shortly after London’s close.

Although the Footsie managed to remain above the 4400 threshold, investors stayed mindful of an almost certain rise in UK interest rates next week.

Financial stocks featured heavily on the Footsie fallers board after disappointing figures from Lloyds TSB had an impact on most other banks, with only HBOS improving.

Oil prices were also taking their toll, reaching a new high of 43.25 US dollars in New York and putting pressure on a host of companies including chemicals-to-paints group ICI.

Lloyds TSB blamed the sale of overseas businesses for a 7% fall in half-year profits to £1.56 billion.

Shares in Lloyds were 1.5p lower at 412.25p, while a number of rivals were also on the back foot with Barclays down 7p at 460p and Abbey National retreating 5p to 567p. HBOS, however, put on 5.5p to 712.5p.

Insurer Royal & Sun Alliance was 0.5p adrift at 77.25p after saying it planned to raise £850 million from the sale of the UK life insurance operation it closed to new business two years ago. Other insurers followed it down, with Friends Provident losing 1.75p to 131.25p and Legal & General also weakening 1.25p to 97p.

Record oil prices left ICI under pressure, off 2.5p at 227p, but profit takers were also targeting the stock after it made strong gains yesterday on the back of a 23% rise in half-year profits.

But positive momentum was provided by mining group Anglo American, which topped the risers board with a 23p gain to 1168p ahead of an expected 47% rise in first half income to 1.26 billion US dollars (£714m) next week.

Rio Tinto was ahead by 22p at 1433p, while BHP Billiton was unchanged at 501p.

Outside the top flight, energy group International Power improved nearly 3%, or 3.75p to 146.75p, after acquiring power plant assets worth 2.3 billion US dollars (£1.27bn).

The deal, to be funded by a rights issue, is expected to enhance earnings in its first full year of ownership.

But investors reacted negatively to survival plans unveiled by engineering firm Jarvis. Shares, which slipped £246.7 million into the red over the past year, fell 10% or 5.25p to 46.5p.

Shares in logistics group Exel fell 12p to 724p despite it reporting a 15% hike in half-year profits.

Meanwhile, retail radio supplier Immedia Broadcasting saw its stock remain unchanged at 84p as it unveiled a 6% widening in first half losses.

The day’s biggest risers were Anglo American up 23p to 1168p, Scottish & Southern Energy ahead 13.5p to 718.5p, Reckitt Benckiser advancing 27p to 1504p and Smith & Nephew lifting 9p to 555p.

The biggest fallers were BSkyB down 16.5p to 604.5p, Bradford & Bingley dipping 5.75p to 269p, Emap off 14.5p to 727p and Unilever retreating 9p to 485.5p.