Footsie in the red

The London market finished in the red today after oil prices soared and Wall Street opened in lacklustre fashion.

The FTSE 100 Index swung between positive and negative territory during the session, closing 15.5 points lower at 4922.1.

The cost of a barrel of US light crude hit a new high during the day, climbing to more than 57 US dollars a barrel before retreating to 56.35 US dollars in late afternoon trading.

In New York, a slight fall in weekly US jobless claims did little to move the markets, which had been expecting the dip.

The Dow Jones Industrial Average reflected traders’ lack of interest in the figures, climbing just five points to 10638.5 shortly after the close of trading in the City.

A second profits warning in less than a year from supermarket chain Morrisons added to the gloom in London, while official retail sales were also weak.

Morrisons lost as much as 6% of its value in early trading but recovered some of the lost ground to end the day as the second heaviest Footsie faller, down 2% or 5.5p at 206.5p.

It had earlier warned that annual profits before tax and one-off items would be in the range of £320 million and £330 million – up to £40 million lower than analysts had expected after more problems integrating Safeway.

Among other retailers, Argos owner GUS slipped 13p to 904p, Marks & Spencer eased 3.25p to 336.5p and Dixons fell 0.5p to 152.75p.

Property companies were also under pressure after a broker cut its rating on the sector to neutral. British Land was a casualty, falling nearly 2% or 14p to 805.5p while Land Securities declined 28p to 1312p.

Steel group Corus was at the top of the Footsie fallers after reporting its first annual profits, but warning that trading conditions were set to become more uncertain. With the company forecasting little movement in first half profits against the second half of last year, the stock slipped 2% or 1.5p to 56p.

On a busy day for corporate results, some of the companies reporting figures provided some cheer. They included B&Q owner Kingfisher, which advanced 5p to 295.5p after reporting a 17.5% rise in pre-tax profits.

And fashion chain Ted Baker was in good form after posting a 21% hike in annual profits and saying demand for its menswear ranges contributed to a strong start to its new financial year. The stock cheered 12.5p to 519p.

But department store group House of Fraser was heading in the opposite direction, 1.5p lower at 105.25p after higher profits were overshadowed by a sluggish start to the new financial year.

Discount retailer Peacock was another faller after announcing the end of a brief takeover tale. It said yesterday it was the subject of bid talks, before shares back gave back their premium today – down nearly 12% or 33.5p to 255.5p - after it emerged the discussions had ended.

Biggest risers were BHP Billiton up 19p at 750.5p, Bunzl lifting 10.25p to 532.25p, Alliance Unichem 13.5p ahead at 768p and Kingfisher advancing 5p to 295.5p.

Biggest fallers were Corus down 1.5p to 56p, Morrisons off 5.5p to 206.5p, Cable & Wireless retreating 2.75p to 125.25p and Land Securities easing 28p to 1312p.