Lacklustre morning for FTSE

London shares started off in lacklustre form today as traders refused to commit their cash ahead of key unemployment data in the United States.

The FTSE 100 Index managed to remain above the 5000 barrier by mid-morning - off 1.4 points to 5003.6 – but experts warned progress depended on American payrolls data due out later in the session.

On a quiet day for corporate news in London, offices services group Rentokil Initial was among the top flight climbers as investors greeted news that it was not thought to be planning a move for rival PHS.

Shares fell earlier in the week following speculation Rentokil was considering a move that shareholders feared would distract from the company’s turnaround. Rentokil lifted 1.25p to 153.5p today.

Even though Rentokil appeared out of the frame, PHS shares still rose to the top of the FTSE 250 Index risers board, up nearly 6% or 5.75p to 103p, after the FT said the company had attracted five bids from private equity firms.

Bookmaker William Hill was the highest blue-chip riser – up 2% or 10.5p to 529.5p. One trader said its meeting yesterday with investment banks regarding its purchase of Stanley Leisure’s betting shops triggered the rise.

Elsewhere, shares in model railways group Hornby gained ground after a rocky few months. The stock lifted 4p to 208.5p as investors welcomed a 16% rise in annual profits and a positive assessment of current trading.

Entertainment group Sanctuary lifted slightly – half a penny higher at 44p - as it revealed it had been in talks about a possible takeover of the firm. The company, whose portfolio of artists includes Morrissey and Iron Maiden, said it was in preliminary talks that could lead to an offer or “further business opportunity”.