London market recovers

The London market recovered some of its early losses today as investors shrugged off a gloomy sales update from US microchip maker Intel.

After sinking more than 10 points in early trading, the FTSE 100 Index fought back to stand 3.8 points lower at 4514.8 by mid-morning.

Intel’s downbeat third quarter forecast came after the closing bell in New York, where the Dow Jones Industrial Average earlier benefited from a late buying surge to end the session more than 1% higher.

A string of corporate updates from drinks and leisure groups were among those guiding the Footsie today.

Drinks giant Allied Domecq helped the performance with a positive update on trading in the year to August 31. Shares rose 5p to 453p as a result.

But the mood was not so bright in the pubs sector after FTSE 250 Index stock JD Wetherspooon reported a fall in annual profits and said supermarkets were continuing to bite into sales as more people choose to drink at home.

Wetherspoon shares fell nearly 2% or 4.5p to 240p.

Leisure group Rank was heading in the opposite direction after announcing it was considering the separation of film and media business Deluxe.

Investors welcomed the move, looking beyond a sharp fall in profits to send shares 3p higher to 278.5p.

Furniture group DFS was also downbeat following last night’s revised takeover offer from Lord Kirkham. Shares in the company were nearly 3% lower, off 11.25p to 429.75p.

In contrast, publishing group United Business Media saw its stock lift 2.5p to 473p after announcing that chief executive Lord Hollick is to retire next May.

Transport group Go-Ahead was also in the black as annual profits lifted by 39% to £91.3m (€134.2m) after benefiting from a strong performance by its bus division. Shares advanced a penny to 1160p.