Footsie in the red

The seven-day winning streak of blue-chip shares was on course to end today after profit takers moved into the London market.

Overnight losses on Wall Street unsettled investors early on while shares in housebuilders dropped on news from the Bank of England that mortgage lending slowed down in July.

The FTSE 100 Index was in the red by 19 points at 4471.1 by mid-morning, although trading volumes were light.

The slump came despite a boost for National Grid Transco shareholders as the company announced plans for a £2bn (3bn) return of capital.

The payout was promised after National Grid said it had agreed to sell four of its regional distribution networks for a better-than-expected £5.8bn (€8.6bn). Shares rose 1.25p to 465p.

Scottish & Southern Energy, which is buying networks in Scotland and the South of England, rose 4.5p to 743p, while United Utilities – part of a consortium buying the North of England region – rose 2p to 549.5p.

Outside the top flight, Bovis Homes was in the red after the Bank of England said mortgage lending in July was nearly £450m (€666) less than in June.

Its shares slipped 12p to 561p and it was joined on the way down by rival Redrow, off 0.25p at 359.75p.