Dixons statement fails to lift FTSE

Relief at a stronger-than-expected trading statement from retailer Dixons failed to keep the London market in positive territory today.

The impact of a clutch of leading stocks going ex-dividend – leaving investors without the right to the latest payment – weighed on the FTSE 100 Index, which reached mid-morning 15.1 points lower at 4877.3.

The Bank of England added to the uncertainty by warning that inflation was likely to breach its 2% target in the near term before falling back again.

Investors were also sweating over the third fall for the Dow Jones Industrial Average in as many sessions, although there was some much-needed good news from the retail sector in the shape of electricals retailer Dixons.

The group advanced 3% or 4.25p to 145.75p on news that a 2% decline in like-for-like sales in the UK was less than many analysts feared.

Steel giant Corus was high up the Footsie fallers board as it continued its bad run that has seen its shares lose nearly one-third of their value since mid-February. It weakened a further 3% or 1.5p to 43p today.

It was joined on the way down by market heavyweights Shell and BP after the pair went ex-dividend, causing shares to drop 6.5p and 7p to 471p and 539.5p respectively.

Supermarket group Morrisons was also off 4.25p at 190p following a broker downgrade.

Elsewhere, ports and shipping group P&O lifted 2% or 5.25p to 282.5p after terms of a 2.3 billion euros (£1.57bn) takeover of container shipping group P&O Nedlloyd by larger rival Maersk were unveiled. P&O retains a 25% stake in P&O Nedlloyd.

But sportswear retailer John David Group dropped more than 5% or 12.5p to 218.5p after its founders agreed to sell their shares at an 8.5% discount and quit the firm.