Footsie ends week on a low

London’s leading shares ended the week in the red today as updates from heavyweight firms BSkyB and British Airways disappointed investors.

At the end of a busy week for corporate news, BSkyB lost almost 5% of its market value after the satellite broadcaster revealed that summer price hikes had persuaded many of its customers not to renew subscriptions.

This contributed to the Footsie closing 8.3 points lower at 5423.6, eating into significant gains racked up over the last few days.

One trader said profit-taking remained a possibility in the near term, but added: “Many investors are once again eyeing the 5500 level and, assuming the Bank of England leave rates unchanged next week, such a move may well prove achievable.”

BSkyB was the heaviest top flight faller, losing 25.5p to 501.5p.

It was followed into the red by British Airways – off 7.75p at 306p – after it posted flat profits for the first six months of its financial year. Shares in BA have enjoyed a strong run recently.

Other fallers included catering group Compass – a day after it fired the boss of its UK division and two other staff over an investigation into how UN contracts were awarded. Shares weakened 3p to 200.5p, partly eroding yesterday’s 3% rise.

Tate & Lyle and International Power also fell in the wake of their updates yesterday, losing 9.75p and 4.5p to 490p and 233.5p respectively.

In contrast, investors expressed relief at new guidance from insurer Legal & General that a Government crackdown on tax dodging would not impact on its profits. The insurer had previously warned the changes could inflict a one-off hit of up to £500 million.

Shares in L&G rose 2p to 110.75p to make it one of the highest blue-chip climbers.

A clutch of insurers joined L&G on the leaders board, with Royal & Sun Alliance up 2p at 105p and Old Mutual rising 2.25p to 138.25p.

Concerns about the strength of its major markets in western Europe, including the UK, did not put investors off brewer Scottish & Newcastle.

Instead, they latched on to news that volumes between July and September improved throughout all regions as S&N shares advanced 5.5p to 484p.

Outside the top flight, baker Greggs dropped almost 5% or 230p to 4650p after warning that recent trading had been affected by fewer shoppers venturing on to high streets around the UK.

Software group Autonomy headed in the other direction, surging 25% or 80.75p to 401p on its transforming 500 million US dollars (£283.2m) deal to buy US rival Verity.

Industrial materials group Cookson was also in the black after it posted a 24% rise in pre-tax profits for the third quarter of its financial year. Shares advanced 6.5p to 337p.

The highest Footsie risers were Yell up 9.5p to 463.5p, Amvescap rising 7.5p to 383.75p, Royal & Sun Alliance up 2p to 105p and Legal & General rising 2p to 110.75p.

The heaviest fallers were BSkyB down 25.5p to 501.5p, BHP Billiton off 26p to 836p, British Airways down 7.75p to 306p and Tate & Lyle off 9.75p to 490p.