FTSE held back

The FTSE 100 Index was held back today by a sharp fall in the share price of market heavyweight GlaxoSmithKline.

The drugs company lost around 5% of its value after regulators in the United States proposed tougher restrictions on its biggest-selling asthma drug.

The impact of the news, which sent Glaxo shares down 70p to 1427p, kept the FTSE 100 Index in negative territory and below the 5500 barrier – down 2.5 points at 5496.4 by mid-morning.

Oil heavyweights were among those helping to offset the decline at Glaxo, with BP up 6.5p at 650.5p and Royal Dutch Shell ahead 27p at 1928p.

And hopes of stronger retail trading conditions, following the recent cold snap, pushed a clutch of retailers on to the top flight risers board.

The biggest beneficiary was Next, which added 19p to 1375p, while Argos owner GUS cheered 9.5p to 885.5p.

Elsewhere, shares in online gaming giant PartyGaming emerged unscathed from a war of words with smaller rival Empire Online.

Empire said takeover talks had broken down and added that it was considering legal action over the recent decision to block its players from gambling at the same tables as PartyGaming customers – a move that caused Empire to warn on profits last month.

PartyGaming stood 0.75p higher at 98.75p while Empire Online was up 7%, ahead 4.5p to 68p.

Business telecoms firm Thus rose 5% – up 0.75p to 15.25p – after it unveiled a sharp reduction in first-half losses and said it was interested in playing a role in the recent consolidation of the telecoms sector.

Glasgow-based Thus, which owns the Demon internet brand, said operating losses on continuing operations came in at £5.8 million, compared with a deficit of £23.3m (€34m) last year.

Computacenter also gained 17%, up 37p to 251.5p, after dealers reacted to Friday’s news that the hardware company’s co-founders were considering buying back the firm.