Footsie ends week on a low note

The London market finished off a week of modest progress on a low note today.

The FTSE 100 Index subsided by 8.6 points to 4986.3, 14.5 points ahead of its opening level on Monday.

A lacklustre performance by banking and oil stocks dashed chances of the index closing the week above 5000.

The hangover from yesterday’s bad debts warning from Barclays left the bank 1% poorer today, while BP and Shell both fell following a slight rise in the price of US light crude to more than 51 US dollars a barrel.

The Footsie topped 5000 during the day, but declined as the euphoria from a positive session in New York last night quickly wore off.

The higher oil price put paid to early progress in the Dow Jones Industrial Average, which dipped seven points in early trading.

Back in London, Barclays was again a casualty, adding to Thursday’s 4% fall with a 6p drop to 522p.

The rest of the banking sector experienced mixed fortunes, with HBOS losing 0.5p to 806p, Lloyds TSB unchanged at 458p, but Alliance & Leicester gaining 7.5p to 860p, Royal Bank of Scotland up 9p to 1615p and Northern Rock strengthening a penny to 746p.

HSBC gave back initial gains to stand tuppence lower at 868p after employees staged strike action on the day of its annual meeting.

Chairman Sir John Bond described the action as “deeply regrettable”, but said trading in the company’s first quarter had been in line with expectations.

Among the oil stocks, BP fell 3.5p to 557p and Shell slipped 2p to 485.5p.

Retail company Kingfisher was another casualty, off 2.75p at 259p as investors continued to react to yesterday’s poor first quarter trading update.

And leisure company Whitbread gave back some of yesterday’s 7% rise, falling 11.5p to 913.5p as investors cooled their interest in speculation linking private equity firms to a possible bid for the business.

The drop reflected a tough day for leisure based companies as caterer Compass fell 1.25p to 219.75p and InterContinental Hotels eased 14p to 642.5p.

In London, media companies were in positive territory with Emap unchanged at 810p and BSkyB up 2.5p at 548p.

The sentiment towards supermarket group Sainsbury’s also remained positive with shares lifting 3.25p to 287.5p as investors held on to hopes of a revival at the former market leader.

On a quiet session for corporate news, dairy group Arla initially lost ground in the wake of its interim results, before recovering to stand 0.75p ahead at 65.25p.

Arla said profits doubled to £10.1 million in the six onths to March 31, but warned rising oil prices had forced it to pay more for its packaging and fuel at a time when utility bills and the price of steel all moved higher.

Biggest risers were Corus up a penny at 45p, O2 2.75p ahead at 129.25p, Morrisons gaining 3.75p to 191.5p and Gallaher lifting 9.5p to 831.5p.

Biggest fallers included Yell down 10.5p to 407p, ITV losing 2.75p to 115.5p, Sage off 4.75p to 216.75p and InterContinental Hotels weakening 14p to 642.5p.