FTSE heavyweights fail to make headway

London’s leading shares failed to make headway today despite takeover talk boosting the fortunes of the building materials sector.

News that second tier firm Aggregate Industries had received a potential takeover approach added a quarter to its market value and lifted top flight rival Hanson.

But downbeat trading across the Atlantic and a mixed set of results for retailers helped send the FTSE 100 Index 7.5 points lower to 4810.9 by mid-morning.

New York’s Dow Jones Industrial Average fell 65 points last night, although experts tipped it to open higher today.

One trader warned there could be further downward pressure on shares if data due out in the United States today shows a fall in oil stocks, increasing the cost of a barrel of crude.

Hanson was the highest Footsie climber – up nearly 6% or 26.25p to 488p – as investors warmed to the prospect of consolidation in the sector. Quarrying-to-concrete group Aggregate saw its shares lift 27.5p to 141.5p, after the world’s second biggest cement maker Holcim made a 138p-per-share approach.

Back in the top flight, electrical retailer Dixons was another riser after strong performances from its Currys and Dixons chains prompted a 2% rise in UK Christmas sales. The stock rose 3.25p to 159.75p.

But it was a different story for fashion house Burberry, whose stock was one of the heaviest FTSE 250 fallers after it said UK trading was disappointing. Shares lost 14p to 403.75p despite a 7% rise in total third-quarter revenues.

Car insurer Admiral saw its shares fall 1% – off 3.5p to 338p – as it said the industry was braced for a gradual decline in profitability.

Kitchen equipment group Aga Foodservice was in the black after saying a drive to promote its products as gifts contributed to a rise of more than 20% in festive sales. Shares rose 4.25p to 275p.