Footsie falls away from 4600 mark

Profit takers pounced on blue-chip stocks today as a downbeat opening on Wall Street sparked a late sell-off on this side of the Atlantic.

The FTSE 100 Index had hovered around the 4600 barrier until mid-afternoon when it slipped into reverse gear, eventually closing 17.3 points lower at 4570.8.

Market morale was dented by the announcement that the number of people out of work in the US during the past week was significantly higher than expected.

This sent the Dow Jones Industrial Average down nearly 90 points although it was finding some support close to the key 10,000 threshold.

Fears over further disruption to Nigerian oil output also continued to haunt traders, with a barrel of US light crude climbing back to the 50 US dollars mark.

High street retailer Boots captured the mood in London after disappointing investors with an update on summer sales.

The health and beauty chain was second on the Footsie fallers board – down 19.5p at 642p – after reporting a cooling in sales growth and warning that margins had come under pressure from price discounting.

The rest of the retail sector was also in subdued mood with Sainsbury’s losing some of its recent strength to slip 5.25p to 254.75p. Rival Tesco fell 3.5p to 285.25p while Marks & Spencer lost 2.25p to stand at 343p.

Elsewhere, investors looked on the bright side of a trading statement from mmO2 after the mobile phone group reported first half revenue growth ahead of expectations, but warned of a significant slowdown in the second six months.

Shares cheered 2.5p to 98.25p while Vodafone also benefited with a 1.25p improvement to 132.25p. In the FTSE 250 Index, Virgin Mobile continued to suffer from its update earlier in the week, falling 5% or 8.25p to 174.25p.

Tarmac owner Anglo American eased a penny to 1325p after ditching its £53 million offer for Johnston Group following competition concerns.

Shares in FTSE Fledgling firm Johnston, which operates two UK quarries and is the world’s biggest maker of road-sweeping trucks, slumped 10% or 40p to 380p in the wake of the news.

Dairy company Arla Foods surged almost 8% or 3.75p to 51p after announcing strong sales for its key brands, including Lurpak. The company also said it was closing two dairies.

Property group Minerva, the new owner of Allders, lifted 0.25p to 303p despite saying it had underestimated the challenge of reviving the retailer after slumping £22.9 million into the red.

And shares in car accessories and cycle retailer Halfords weakened 1.25p to 292p as news that total sales improved 13% in the 25 weeks to September 24 failed to cheer its investors.

The day’s top risers were ITV, up 3.25p to 107.75p, Man Group gaining 34p to 1189p, mmO2 lifting 2.5p to 98.25p and Friends Provident adding 3p to 139.25p.

Biggest losers were Compass Group, down 7.5p to 220.5p, Boots off 19.5p to 642p, British Airways easing 5.25p to 207.5p and Reckitt Benckiser shedding 33p to 1354p.