FTSE falls as oil prices remain high

A hectic session for corporate news failed to keep the minds of investors off oil prices today as the FTSE 100 Index continued to come under pressure.

Last week’s two-year high for the top flight now appeared a distant memory as the Footsie slipped another 5.4 points to 4629.4 by the close.

The London market took its lead from the Dow Jones Industrial Average, which was back below 10,000 after a disappointing third quarter update from General Motors sent the US index into reverse.

Oil prices also remained above $54 a barrel to put pressure on a clutch of industrial and energy-dependent stocks, including British Airways - down 6p at 203p to lead the Footsie fallers board.

Mobile phone stocks also put pressure on the market with heavyweight Vodafone down more than 1% – off 1.75p at 134p – and BT Group 1.25p lower at 180.5p.

Among a large number of companies reporting today, Argos owner GUS produced a typically robust sales update but failed to capitalise on a 13% rise in first half sales as shares fell 7.5p to 890p.

However, the biggest story of the session was in the FTSE 250 Index after WH Smith reported annual losses of £135m (€195m). The underlying profits performance was at least in line with expectations and meant WH Smith shares managed a 2% or 7p rise to 326.25p.

There was also a late session move in Manchester United shares amid reports that US tycoon Malcolm Glazer had failed to secure an agreement with United’s biggest shareholders – John Magnier and JP McManus – on the sale of their stake.

The stock lost some of its bid premium to fall more than 3% or 9.5p to 264p.

The biggest Footsie risers were Cadbury Schweppes up 10.75p at 446p, Compass Group ahead 4.5p at 221.5p, SABmiller up 12.5p at 761.5p and Anglo American ahead 19p at 1270p.

The biggest fallers were British Airways down 6p at 203p, Centrica off 6.75p at 238.25p, Rexam down 10.5p at 423p, Smith & Nephew off 11.5p at 481.5p.