FTSE ends the day 20 points down

The FTSE 100 Index ended the week in the red amid weak US economic news and caution about Sunday’s election in Iraq.

After spending most of the day slightly below its opening mark, the Footsie lost further ground to close 20.6 points adrift at 4832.8.

Figures released this afternoon showed the US economy growing at a slower-than-expected pace in the last three months of 2004. Analysts had expected growth of 3.5% against the actual figure of 3.1%.

Analysts said uncertainty about the poll to elect a new government in war-torn Iraq was also adding to the downbeat mood.

Oil stocks Cairn Energy, BP and Shell all lost ground in London as crude prices slipped on speculation that the Organisation of Petroleum Exporting Countries will postpone output cuts to halt a 15% gain in prices this month. Brent crude futures fell 2% to just over 45 US dollars a barrel while US light crude slipped 3% or more than a dollar.

Cairn fell to 7p to 1138p, while BP was fifth in the losers with an 8p dip to 525p. Shell receded 2.25p to 461.25p.

Outside the oil sector, speculation that Reckitt Benckiser could be the next consumer products giant to attract a buyer took its shares to second in the list of Footsie risers.

Reckitt attracted interest as traders assessed the impact of Procter & Gamble’s proposed £30 billion takeover of Gillette, which was unveiled today.

Reckitt rose 42p to 1582p and rival Unilever gained 7.25p to 499.25p, while takeover talk continued to boost shares in logistics group Exel, which is seen as a possible target of US giant United Parcel Services. Exel strengthened 15.5p to 785.5p.

Among other developments, airports operator BAA edged ahead by 3p to 618p, following third quarter results showing it remained on track to handle 6% more passengers than a year ago

Broker upgrades boosted AstraZeneca as analysis of the drugs giant’s full-year results yesterday suggested that margin targets would be met. AstraZeneca shares rose 15p to 1995p, but there was no such joy for rival GlaxoSmithKline, which fell 7p to 1178p.

In the market’s second tier, United Business Media rose 4% or 24.5p to 541.5p after announcing it had launched a strategic review that could result in the sale of its NOP World market research business.

And children’s character rights group HIT Entertainment rose 7.5p to 258p – a jump of almost 3% – after it said it had made a steady start to its financial year.

But car manual publisher Haynes found the going tough after the weak US dollar capped interim profits at £3.7 million – the same level as last year. Its shares fell more than 4% or 17.5p to 362.5p even though an “exciting” publishing programme was prepared for the second half of its financial year.

The biggest Footsie winners were Amvescap, up 14.5p to 328.75p, Reckitt Benckiser ahead 42p to 1582p, 3i lifting 17.5p to 691p and Exel advancing 15.5p to 785.5p.

The biggest losers were Tate & Lyle, weakening 8.5p to 445p, Whitbread down 16p at 878.5p, Allied Domecq off 8.5p at 483.5p and BHP Billiton slipping 10p to 645p.