US election shakes FTSE

Jitters over the outcome of the US Presidential election prevented London shares making significant progress today.

Although the FTSE 100 Index added to yesterday’s gains of nearly 50 points, it only managed to climb 5 points higher to 4678.8 by mid-morning.

One dealer said that if the election failed to create a clear result, this could push prices lower.

The cautious mood reflected yesterday’s performance by shares across the Atlantic, where the Dow Jones Industrial Average racked up modest gains of 26 points.

In London, retailer Sainsbury’s succumbed to profit-taking as investors collected gains achieved amid continued bid speculation. Shares slipped 2%, making the group the second heaviest faller – off 5.5p at 261.75p.

In contrast, British Airways was the highest climber, up more than 1% or 3.25p to 219.25p, as the price of a barrel of crude oil dipped below the $50 mark.

It came after airports operator BAA said it remained on course for 6% annual growth in passenger numbers following a “robust” performance over the summer months, lifting shares a penny higher to 574.5p.

Other news in the sector came from outside the top flight, as budget carrier Ryanair said profits after tax in the half year climbed 15% to a record €201.3m.

Although Ryanair said it remained cautious about the rest of the year, shares in Dublin lifted 11%, up 45 cent to €4.46.

Premier Foods was half a penny higher at 223p after assuring investors that it could meet Christmas demand for family favourite Branston Pickle and other products made at its Bury St Edmunds plant after last week’s blaze.

But clothing retailer Matalan failed to cheer investors with news that like-for-like sales had resumed an upward path and profits had steadied. Shares weakened half a penny to 227.25p.