Caution restrains FTSE

Caution ahead of the return of US traders from their long weekend was hampering the London market’s progress today.

Despite four consecutive sessions of gains in recent days, the FTSE 100 Index failed to move into the black, down 1.3 points at 4562.5 by mid-morning.

Analysts said the degree of caution came as investors awaited the reopening of markets across the Atlantic, although recent gains also left stocks open to profit-taking.

A clutch of companies going ex-dividend – meaning shareholders will no longer be entitled to dividends – featured in the heaviest Footsie fallers. They included Legal & General, off 1.5p to 102.75p, and GlaxoSmithKline, falling 17p to 1135p.

William Hill was also in the red for a second day as yesterday’s update continued to disappoint investors. Shares weakened 4.5p to 525.5p.

But personnel group Hays featured among the highest climbers after saying its core recruitment division had delivered an “excellent” annual performance and confirming it will hive off its mail business later this year. Shares in the group lifted 2% or 2.5p to 126.5p

Aerospace and defence group Meggitt was also upbeat – adding half a penny to 234p – after posting record half-year profits.

Outside the top flight, Cairn Energy was in the doldrums as it blamed the weak US dollar for a 40% fall in interim profits. A fall of 12p to 1462p came as investors tipped it as a likely candidate to enter the Footsie.

Punch Taverns was in high spirits, up 12p to 479.5p, after toasting an acceleration in second-half trading. It also defended itself against a parliamentary probe into fairness in the pubs sector.

Financial services group Britannic added 4p to 362p after posting a 6% rise in operating profits and announcing an interim dividend.