FTSE spree interrupted

The London market paused for breath today at the end of a spectacular week of progress for the FTSE 100 Index.

A rare fall for Shell and a poor showing by stocks in New York overnight appeared to dent the confidence of investors in London whose buying spree has helped the Footsie to rise by more than 100 points since Tuesday.

By mid-morning, the top flight was off 7.3 points at 5321.2, while the FTSE 250 Index fell from its record high to stand 5.7 points lower at 7792.8.

Takeover activity has helped the second tier to the new record, but consolidation has also buoyed the Footsie following yesterday’s news of a bid approach for logistics company Exel.

It was the turn of gases group BOC in the spotlight as investors speculated that a bid could be in the pipeline from German chemicals group BASF.

BOC shares were at the top of the Footsie risers board after a gain of 4%, or 45p, to 112p, while the stock was also heavily traded with more than eight million shares changing hands – far more than normal.

The group was followed on the leaders board by Cadbury Schweppes as investors continued to warm to the confectionery group’s plans to sell its European drinks business. Shares were up 11.5p at 572.5p, a gain of 2%.

Among the energy stocks, Shell slipped back 11p to 1886p but BP was near its opening mark, up half a penny at 638p.

Outside the top flight, pubs chain JD Wetherspoon fell 10p to 281.5p after announcing a further fall in profits and revealing that like-for-like sales dived by 1.7% in August, greater than the 0.6% drop seen over the past year.

Shares in supermarket chain Somerfield did not suffer from a competition ruling that it must sell a dozen stores recently acquired from rival Morrisons. Shares rose 1.5p to 200p because they are supported by ongoing takeover talks.