Downbeat company results drag down FTSE

Disappointment at the latest batch of company results contributed to a negative performance by the FTSE 100 Index today.

Investors reacted negatively to updates from the likes of leisure group Hilton and steel giant Corus, adding to the jitters prompted by sky-high oil prices.

The Footsie stood 15.3 points lower at 5259.9 by mid-morning, with just a handful of stocks in positive territory.

Concerns over the potential impact of oil prices on businesses weighed on the mood after the cost of a barrel of crude hit a new high of 68 US dollars overnight.

Oil-dependent stock British Airways weakened 4.25p to 280.25p after the latest surge, while cruise operator Carnival edged 14p lower to 2956p. However, oil giants BP and Royal Dutch Shell were among the few stocks in the black – lifting 2p and 9p to 626.5p and 1840p respectively.

Leisure group Hilton was the second-heaviest blue-chip faller as investors digested its half-year profits announcement.

The stock lost 2% or 6p to 299.5p after revealing underlying pre-tax profits increased to £192.1m (€281.5m) from £191.3m (€280.4m), as a tough first half for Ladbrokes was offset by a better performance from its worldwide hotels chain.

And steel group Corus weakened a penny to 44.5p as it said trading conditions had become tougher as selling prices cooled – overshadowing half-year results showing the benefits of its restructuring.

But fellow blue-chip consumer packaging group Rexam managed to advance half a penny to 499.5p after a strong performance by its drinks can division helped it post a 6% hike in first half profits.

Outside the top flight, book chain Ottakar’s lifted more than 5% or 19p to 362p after HMV said it was in the early stages of discussing a bid that could scupper the plans of the founder of Ottakar’s and other senior executives to take the company private. HMV cheered a penny to 250.25p.