Footsie's positive run comes to an end

A strong run for the FTSE 100 Index came to an end today, despite the latest round of takeover speculation involving top-flight companies.

After logistics group Exel confirmed a bid approach from Deutsche Post yesterday, industrial gases firm BOC found itself in the spotlight following rumours that German chemicals group BASF was on the prowl.

BOC shares rose 4% or 44p to 1128p, but it was not enough to lift the Footsie as a whole, which closed 1.7 points lower at 5326.8. The FTSE 250 Index, which reached a record high last night, slipped 6.2 points to 7792.3.

The weaker session, which was blamed on a rare fall for oil prices and a lacklustre session for stocks in New York, came after a buying spree had helped the Footsie to rise by more than 100 points since Tuesday.

BOC was followed on the risers board by Scottish Power – up 13p to 525p – as some traders aired the view that it could also be a takeover target now that it was in the process of selling its US arm PacifiCorp.

Cadbury Schweppes was 8.5p higher at 569.5p after investors continued to warm to the confectionery group’s plans to sell its European drinks business.

Property companies also drove the Footsie forward after Hammerson – up 21p at 930p – lifted the mood in the sector with positive results earlier this week. Land Securities cheered 36p to 1457p.

Among the energy stocks, Shell slipped back 15p to 1882p and BP weakened 3p to 634.5p as oil prices fell to 68 US dollars a barrel following the release of more reserves to deal with the post hurricane crisis in the United States.

Outside the top flight, pubs chain JD Wetherspoon fell 4%, or 12p, to 279.5p 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.

Two other high-profile second-tier stocks fared better with glass maker Pilkington ahead 7p at 139.5p and car rental firm Avis Europe up 10% or 5.5p to 58.5p.

The latter benefited from better-than-expected results yesterday, while Pilkington continued its week-long rally as the perception of the firm as a takeover candidate grew stronger.

Supermarket chain Somerfield did not suffer an adverse reaction to a competition ruling that said it must sell a dozen stores recently acquired from rival Morrisons. Shares rose a penny to 199.5p because they are supported by ongoing takeover talks.

Gaming operator Empire Online rose after revealing a £790 million takeover approach just two months after floating on the stock market. A mystery bidder has indicated that it is willing to pay 270p a share and this explained the 4% or 9p rise in Empire shares to 264p.

The biggest Footsie risers were BOC up 44p at 1128p, Scottish Power ahead 13p at 525p, Land Securities up 36p at 1457p and Hammerson ahead 21p at 930p.

The biggest fallers were Old Mutual down 3.25p at 141.25p, ITV off 2.5p at 114.25p, InterContinental Hotels down 15p at 735p and Carnival off 53p at 2786p.