Ex-dividend moves leave FTSE struggling

A string of companies going ex-dividend today left the London market struggling to move above the key 4900 mark.

The FTSE 100 Index fell 19.3 points to 4899.7 by mid-morning after stocks including insurer Legal & General and brewer Scottish & Newcastle stopped offering a dividend to new investors.

London shares also took their lead from New York, where higher oil prices and economic data sent the Dow Jones Industrial Average nearly 80 points lower overnight.

One analyst said losses across the Atlantic were also prompted by traders consolidating their position at the end of the first quarter earnings season.

Scottish and Newcastle was the heaviest Footsie faller, down nearly 4% or 17.25p to 461.75p, followed by Legal & General, down 3.5p to 113.25p. Other stocks going ex-dividend included InterContinental Hotels, weakening 15.5p to 610.5p and B&Q owner Kingfisher, down 4.5p to 291p.

Media group Emap was doing little to buoy the mood despite saying it expected to achieve solid annual growth in the coming year and reporting trading in line with expectations. The stock also featured on the fallers board, down 11p to 824p.

Although it said it anticipated a good performance from its UK businesses in 2005/6, the group said its French operation remained under pressure.

And Scottish Power weakened 3.25p to 410p after saying a lack of snow would hit its US division in the coming year, but predicting an unchanged outcome for the group.

Outside the top flight, publisher Bloomsbury advanced 3% or 9.5p to 315.5p after revealing pre-orders for the sixth book in the Harry Potter series had “substantially exceeded” expectations.

And the owner of talkSPORT radio lifted 2% after saying it was in takeover talks with several suitors. The Wireless Group cheered 3.5p to 85p.